Major Crypto Exchanges Rush to Secure Licenses in Turkey’s Evolving Market
Turkey’s cryptocurrency landscape is undergoing a significant transformation as prominent global exchanges, including Coinbase and KuCoin, join a growing list of companies seeking business licenses in the country. This surge in applications follows recent regulatory updates by the Turkish Capital Markets Board (CMB), signaling a pivotal moment for the nation’s burgeoning crypto sector.
On August 9, 2024, the CMB initially announced that 47 cryptocurrency companies had applied for licenses under new regulatory frameworks. However, this number has since swelled to 76, with notable additions such as Coinbase, KuCoin, and Gate.io joining previously recognized entities like Binance, Bitfinex, and OKX in the application process.
The influx of applications comes in the wake of the “Law on Amendments to the Capital Markets Law,” which took effect on July 2, 2024. This legislation aims to establish a regulatory framework for crypto asset service providers in Turkey, prompting both local and international exchanges to seek official authorization.
Despite the growing interest, the CMB has emphasized that inclusion 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 and meeting strict regulatory requirements.
Turkey’s regulatory environment for cryptocurrencies remains in flux. While comprehensive crypto legislation is still pending, existing regulations currently govern market activities. In January, Turkish Treasury and Finance Minister Mehmet Simsek indicated that local crypto legislation was nearing completion, though the anticipated draft has yet to be introduced to parliament.
The country’s strategic importance in the global crypto market is underscored by its ranking as the fourth-largest crypto market worldwide, with an estimated trading volume of $170 billion. This positions Turkey ahead of significant markets like Russia, Canada, and Germany, according to Chainalysis data.
As the Turkish crypto market continues to evolve, the surge in license applications reflects the industry’s optimism and the country’s growing prominence in the cryptocurrency sector. However, the path to full regulatory compliance remains complex, with the CMB continuing to update its list as companies address regulatory deficiencies and the board concludes its investigations.
