On April 21, Turkish based crypto exchange Thodex unexpectedly shut down trading activities on its platform. Users were left facing turmoil after realizing they were unable to access their digital funds on the exchange.
However, Thodex released a statement saying the sudden move was part of its plan, as the company decided to include other entities who will improve customer service. Additionally, the exchange said that as it transfers its shares to other investors, investments within the platform will remain safe and out of reach from any other party.
Thodex’s Undisclosed Partners
The exchange did not reveal who or how many interested investors are acquiring its shares but mentioned that the activity would take about five working days. Thodex head Faruk Ozer has not given any information regarding the share sales and did not respond to reporters’ calls.
Nonetheless, the trading platform’s customers have made furious statements concerning the trading standstill. Some users expressed their disappointment in the exchange, saying their hard-earned investments were somewhat ”stuck”.The outcry extended to sikayetvar.com, a third party alarm raising forum that saw several complaints from furious clients on the matter.
Thodex launched its trading activities back in 2017 and became one of the most preferred platforms in Turkey. Last year, the exchange acquired a FinCen license which enabled it to operate worldwide. Moreover, Thodex also brought the first BTC ATM in Turkey at the Nişantaşı town in Istanbul.
Turkey’s Delicate Crypto Situation
Recently, Turkish financial authorities banned the use of cryptocurrencies as a means of payment. According to the worldwide news blog Al Jazeera, the country fears its citizens will use digital assets for illegal transactions. In published legislation, the country’s Central’s Bank banned crypto payments for goods and services, either indirectly or directly.
The Central Bank resonated its action stating,
“Their use in payments may cause non-recoverable losses for the parties to the transactions … and include elements that may undermine the confidence in methods and instruments used currently in payments.”
Moreover, the financial oversight said crypto-assets were not under any regulations or in any central authority’s control and may pose a risk to the financial stability of Turks.
Thodex’s trading silence was likely caused by the harsh crypto environment conditions in the country. Traders are still asking why they were not informed before the abrupt shut down of trading activities in the exchange.
Nonetheless, investors seem to have not lost faith in cryptocurrency trading despite the calls for harsh regulatory measures. The recent market price fall of several cryptocurrencies, including BTC and ETH, did not precisely trigger a selling spell in the crypto market.