By
Mayowa Adebajo
April 11th, 2024
FTX exchange and its ranking executives continue to face various investigations since the infamous crumbling of the crypto empire.
Local news reports emerging from Turkey suggest that Turkish authorities have frozen assets belonging to former FTX CEO Sam Bankman-Fried. The report was first shared by the state-run news agency Anadolu Agency (AA). According to AA, the freeze follows a government probe into Sam Bankman-Fried, FTX exchange and some of its other affiliates, over fraud allegations that surfaced on the heels of FTX’s recent collapse.
Turkey Eyes Stricter Crypto Regulations Following FTX Downfall
It is worth mentioning that Turkish authorities have not only seized the assets of Bankman-Fried. According to a Wednesday announcement by the country’s Treasury and Finance Minister Nureddin Nebati, assets of some FTX arms have also been seized as well. Nebati claims that the move is in line with the cautious approach that Turkey is taking toward the crypto market. Particularly considering both the new risks and opportunities that the sector brings. Nonetheless, he argues that the sudden collapse of FTX has necessitated the need for stricter crypto regulations. So, hopefully, the ongoing investigation by the Financial Crimes Investigation Board (MASAK), will form the foundation for those regulations.
Meanwhile, it is also worth mentioning that Turkey’s approach toward crypto has always been a dicey one. The country remains one of the top adopters of crypto, largely owing to its inflation-stricken lira. But on other occasions, Turkey has proven to be strict on crypto. For instance, the country banned crypto payments back in April 2021. At the time, it also prohibited payment service providers, within its jurisdiction, from integrating digital assets with their businesses.
However, with the recent predicament of FTX and given that FTX TR – its Turkish branch, is part of the Bankman-Fried failed crypto empire, efforts are now in top gear to enact stricter rules for the sector.
Last month, Coinspeaker reported that the central bank of Turkey revealed its central bank-issued digital currency (CBDC) project plans. According to the announcement, the plans should fully materialize in 2023, with the CBDC expected to launch in the same year.