Turkey is facing a massive increase in interest from cryptocurrency firms which are eager to operate within its borders. The Turkish Capital Markets Board (CMB) recently reported that 47 crypto companies have submitted license applications in light of newly implemented regulations.
This surge includes prominent exchanges such as Bitfinex, Binance TR, and OKX TR. However, some major players like Coinbase, Bybit, KuCoin, MEXC, and Gate.io have yet to file their applications.
New Regulations Fuel Interest in Turkey’s Crypto Market
The growing interest in entering the Turkish market can be attributed to the recently established “Law on Amendments to the Capital Markets Law,” which became effective on July 2. This legislation aims to create a regulatory framework for crypto asset service providers operating in Turkey.
In a statement, the CMB noted that three companies have declared their intent to liquidate, while others that failed to provide adequate information are still undergoing the review process. It is important to highlight that being included in the “List of Those in Operation” does not signify official authorization. Companies must obtain formal approval from the CMB following the enactment of secondary legislation. The list will continually be updated as businesses rectify deficiencies or as the CMB completes its investigations into their operations.
Even in the absence of comprehensive cryptocurrency laws, Turkey has implemented certain regulations to oversee the market. Turkish Treasury and Finance Minister Mehmet Simsek indicated earlier this year that a complete regulatory framework was nearing completion, though the draft legislation has yet to be introduced to parliament.
Crypto License Applications in Turkey
Turkey’s crypto market operates under two main regulations, despite a lack of specific legislation from parliament. The first regulation was introduced by the Central Bank of the Republic of Turkey in 2021, which prohibits the use of cryptocurrencies like Bitcoin as a means of payment, as these currencies are not recognized as legal tender.
The second regulation, which focuses on Anti-Money Laundering (AML) measures, is overseen by the Financial Crimes Investigation Board (MASAK). This requires cryptocurrency exchanges to gather Know Your Customer (KYC) information to help mitigate risks associated with financial crimes such as laundering money and financing terrorism.
Turkey’s proactive attitude towards cryptocurrency regulation comes as no surprise, given its presence in the global crypto economy. The country boasts one of the highest rates of crypto adoption worldwide.
Turkey’s Position in the Global Crypto Market
Data from Chainalysis indicates that Turkey ranks as the fourth-largest crypto market globally, with an estimated trading volume reaching around $170 billion, surpassing other key markets including Russia, Canada, Vietnam, Thailand, and Germany. This notable interest from both local and international crypto firms underscores Turkey’s rapidly growing stature in the industry and its commitment to fostering a safe and regulated crypto environment.
Interest from International Crypto Firms
As excitement rises among local and international cryptocurrency firms, the Turkish digital asset landscape could witness a substantial expansion. The CMB’s acknowledgment of 47 crypto firms seeking operating licenses highlights the active interest in the nation, with Bitfinex, Binance TR, OKX TR, and Gate TR among the recognized players.
Confirming their application, a representative from Gate TR, the Turkish platform linked to Gate.io, stated, “The news source you cited has been removed due to market manipulation and misinformation following our complaint. As Gate TR, we have submitted our license application.” This sentiment is echoed by Binance TR and OKX TR, though it remains uncertain whether other major exchanges, such as Bybit, KuCoin, and MEXC, will make similar applications moving forward.
The influx of applications stems from the July 2nd rollout of the “Law on Amendments to the Capital Markets Law,” which effectively establishes a regulatory environment for crypto service providers in Turkey. The CMB clarified the status of both firms that have applied and those that have opted to liquidate their operations, publishing lists depicting each group’s status.
Companies listed as “Active” still must pursue formal approval from the CMB once secondary legislation is in place. The CMB has also committed to updating these lists regularly as businesses address outstanding deficiencies or as investigations conclude. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
