After the alleged exit scam previously pulled by the particular cryptocurrency known as Turkish Thodex crypto, yet another crypto trading platform is under heavy investigation by Turkish authorities. Vebitcoin, a certain Turkey-based crypto trading platform, became yet the second crypto exchange to face legal troubles within just about a week after the country's official central bank banned crypto as a mode of payment.

Turkey Crypto Ban

According to news.bitcoin.com, Vebitcoin gave a statement on its website noting that due to some recent developments made in the whole crypto money industry, there was reportedly a much higher density in the company's operations than previously expected. It was noted that they would like to state with much regret that the current situation has led them towards quite a difficult process within the financial field.

The statement further express that the company has finally decided to cease their activities in order to be able to fulfill all of the regulations and claims that they have received. Turkey's Financial Crimes Investigation Board or MASAK has officially blocked the onshore bank accounts on Vebitcoin and has started an investigation right into the platform.

Turkey Crypto Regulation

As of the moment, four people have already been detained as part of the ongoing investigation, according to CoinBase. A prosecutor coming from the southwestern city of Mugla noted in a statement that four administrators and personnel of the company were in fact detained on certain fraud allegations.

This reportedly followed the authorities resulting in detaining 62 different people all in connection with the Turkey cryptocurrency exchange Thodex crypto, whose CEO has suddenly fled the country after halting all trading on his platform. Customers have then filed complaints against the company as a whopping $2 billion of their funds are now reportedly inaccessible.

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Is Cryptocurrency legal in Turkey? 

Thodex and Vebitcoin as of the moment halted trading some time this week after the official Turkish central bank had banned the overall use of cryptocurrencies, which includes bitcoin, as a means of payment within the country. It was noted that crypto assets can no no longer be used directly or even indirectly as payments and that no service can be provided those payments. This official notice comes from the Central Bank.

With crypto becoming extremely popular, this negative tarnish on the reputation of digital currencies in general could be a warning for those crypto traders using certain platforms that can't be trusted. It is very important to make sure that the platform is least likely to pull a stunt as to what the CEO of Thodex did wherein all the money became inaccessible.

With the stakes now higher and higher, it remains to be seen if Turkey's cryptocurrency involvement will remain blocked or will be more open to the digital currency in the future.

Related Article: Overview of Worldwide Crypto-Adoption (2021)

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Written by Urian B.