Key Points
- The number of cryptocurrency companies applying for business licenses in Turkey has increased from 47 to 76, including major players like Coinbase, KuCoin, and Gate.io.
- Turkey ranks the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, highlighting its strategic importance in the cryptocurrency sector.
The Influx of Applications Amid Regulatory Changes
Turkey’s cryptocurrency landscape is transforming significantly as prominent companies rush to obtain business licenses there. The Turkish Capital Markets Board (CMB) recently announced a substantial increase in license applications, rising from 47 to 76 quickly.
This surge in applications follows the implementation of the “Law on Amendments to the Capital Markets Law” which came into effect on July 2, 2023. The new legislation aims to provide a regulatory framework for crypto asset service providers in Turkey, imposing stricter regulations on their operations.
Major Players Enter the Turkish Market
Industry giants Coinbase, KuCoin, and Gate.io are notable additions to the applicant list. These companies join previously recognized entities such as Binance, Bitfinex, and OKX in seeking official authorization to operate within Turkey.
Including these major players underscores Turkey’s rising status as a central hub for cryptocurrency activities. According to Chainalysis, as of September 2023, Turkey is the fourth-largest crypto market worldwide, with an estimated trading volume of $170 billion. This volume places Turkey ahead of significant markets like Russia, Canada, Vietnam, Thailand, and Germany.
Regulatory Challenges and Uncertainties
Despite the growing interest, obtaining a license is not straightforward. The CMB has emphasized that being included in the “List of Those in Operation” does not equate to official authorization. Each company must still obtain formal approval from the board, contingent upon the enactment of secondary legislation.
Furthermore, the CMB noted that eight exchanges, including Bitget, will no longer be operating in Turkey as they faced difficulties in meeting these regulations. This highlights the stringent nature of the new requirements and the challenges some companies face in adapting to the evolving regulatory landscape.
The Road Ahead for Turkey’s Crypto Sector
While comprehensive crypto legislation still needs to be put in place, existing regulations govern market activities. Turkish Treasury and Finance Minister Mehmet Simsek indicated in January that local crypto legislation was nearing completion, yet the anticipated draft has yet to be introduced to parliament.
As the Turkish Capital Markets Board continues to update the list and companies work to meet regulatory requirements, the Turkish crypto market is poised for significant changes. The surge in license applications reflects the sector’s optimism and Turkey’s strategic importance in the global cryptocurrency market.
The coming months will be crucial as the CMB reviews applications, updates regulations, and shapes the future of cryptocurrency operations in Turkey. As this process unfolds, it will be interesting to see how the landscape evolves and which companies successfully navigate the new regulatory environment to establish themselves in this important market.
