Turkey is experiencing a significant rise in interest from cryptocurrency companies looking to establish operations within the country. According to the Turkish Capital Markets Board (CMB), a total of 47 crypto firms have applied for licenses under newly implemented regulations. Among the notable applicants are prominent exchanges such as Bitfinex, Binance TR, and OKX TR.
However, several major platforms, including Coinbase, Bybit, KuCoin, MEXC, and Gate.io, have yet to begin the licensing process, marking their absence from the current applicant list.
Turkey’s New Crypto Law Sparks Wave of Applications
This surge in licensing applications follows the recent enforcement of the “Law on Amendments to the Capital Markets Law,” which officially took effect on July 2. The new legislation is aimed at establishing a comprehensive regulatory framework for crypto asset service providers operating in Turkey.
The CMB has revealed that three companies have declared liquidation, while others with incomplete or insufficient application details are under review. The regulator stressed that being listed on the “List of Those in Operation” does not equate to official authorization. Companies must receive formal approval from the board after the implementation of secondary legislation. The list is expected to evolve as firms address any deficiencies or as the CMB completes its evaluations.
While specific cryptocurrency regulations are still pending parliamentary approval, Turkey already enforces two primary crypto-related rules. The first, issued by the Central Bank of the Republic of Turkey in 2021, prohibits the use of cryptocurrencies like Bitcoin for transactions, as they are not recognized as legal tender. The second regulation, overseen by the Financial Crimes Investigation Board, pertains to Anti-Money Laundering (AML) protocols, requiring exchanges to collect Know Your Customer (KYC) data to combat illicit activities such as money laundering and terrorism financing.
Turkey’s Growing Role in the Global Crypto Market
Turkey holds a significant position in the global cryptocurrency landscape, ranking as the fourth-largest crypto market in the world. The country boasts an estimated trading volume of $170 billion, surpassing other major markets like Russia, Canada, Vietnam, Thailand, and Germany.
Earlier this year, Turkey’s largest cryptocurrency exchange, BtcTurk, was hacked, resulting in the theft of $54 million in funds. The cyber attack, which occurred on June 22, 2024, led to unauthorized withdrawals affecting only certain balances in the hot wallets of 10 cryptocurrencies, while the majority of assets stored in cold wallets remained secure.
As Turkey continues to refine its regulatory environment for cryptocurrencies, the nation’s role in the global crypto market is expected to grow, attracting even more interest from industry players seeking to establish a presence within its borders.
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