Turkey’s cryptocurrency market is experiencing a surge in activity as major global players, including Coinbase and KuCoin, compete for business licenses in the country.
This flurry of applications comes in response to new regulations imposed by the Turkish Capital Markets Board (CMB), which now requires crypto firms to obtain licenses to operate legally within Turkey.
On August 9, the CMB reported that 47 cryptocurrency companies had applied for licenses under the newly established regulatory framework. This number has since ballooned to 76, with notable entries such as Coinbase, KuCoin, and Gate.io joining the competition.
Binance, Bitfinex, OKX Already in the Mix
Established crypto giants like Binance, Bitfinex, and OKX were among the early applicants. While the expanding roster of applicants indicates growing interest in Turkey’s crypto sector, the CMB has emphasized that being listed on the “List of Those in Operation” does not guarantee formal authorization. Each applicant must receive formal approval from the board, a process dependent on the finalization of secondary legislation.
The CMB will continue to update its list as companies address regulatory requirements or as evaluations are completed.
Evolving Regulatory Landscape
Turkey’s cryptocurrency regulations are still in flux. While comprehensive legislation is in the works, existing rules currently govern the market. Turkish Treasury and Finance Minister Mehmet Simsek indicated earlier this year that new crypto legislation was nearing completion, but the draft law has yet to be presented to parliament.
Despite this uncertainty, the influx of license applications underscores the industry’s optimism and Turkey’s strategic significance in the global crypto arena.
The uptick in applications follows the implementation of the “Law on Amendments to the Capital Markets Law,” effective July 2. This law aims to create a regulatory framework for crypto asset service providers in Turkey.
Turkey’s Crypto Market Influence
Turkey holds a prominent position in the global cryptocurrency landscape, ranking as the fourth-largest crypto market with an estimated trading volume of $170 billion. This places it ahead of major markets such as Russia, Canada, Vietnam, Thailand, and Germany.
Earlier this year, Turkey’s largest cryptocurrency exchange, BtcTurk, suffered a significant cyberattack, resulting in the theft of $54 million. The breach, which occurred on June 22, 2024, led to unauthorized withdrawals from some hot wallets, though the majority of assets held in cold storage were unaffected.