Coinbase Withdraws from Turkish Market
In a recent development, cryptocurrency exchange Coinbase has officially withdrawn its pre-application to enter the Turkish crypto market. As reported on November 29, Turkey’s financial regulator updated their list of companies undergoing liquidation, confirming Coinbase’s decision to step back.
Other Companies Facing Liquidation
Coinbase’s departure is not an isolated incident. QNB Digital Assets, part of Turkey’s QNB bank, also filed for liquidation, joining a list of other companies such as Bitget, Finceptor, Koinim, Stanfex, and XYZ Technology. With these withdrawals, the total number of companies pursuing liquidation in Turkey has now reached 14, while 77 other applicants are still in the process of seeking approval to operate.
Continued Interest from Other Exchanges
Despite the challenges, some exchanges still see potential in the Turkish market. Companies like Bitfinex, Bitbns, Bitlo, OKX, and Rain Software are actively applying to provide custody services, demonstrating a continued, albeit cautious, interest in exploring opportunities in Turkey’s evolving crypto landscape.
Uncertainty Surrounds Coinbase’s Decision
Earlier this year, Coinbase expressed enthusiasm about the Turkish market’s growth potential. However, the reasons behind its withdrawal remain unclear. A representative from Coinbase did not respond to inquiries from Cryptonews by the time of publication, leaving stakeholders and observers speculating about the factors influencing this choice.
Binance Adjusts Its Strategy
In parallel developments, rival crypto exchange Binance announced in October that it would terminate its retail referral program in Turkey. This move aligns with the tightening of local regulations, reflecting the challenges international firms face in adapting to Turkey’s regulatory environment.
Regulatory Landscape in Turkey
Turkey’s crypto market presents significant growth potential, yet operates under several challenges, including unpredictability stemming from the depreciation of the Turkish lira. As foreign firms seek to navigate this landscape, they must contend with fluctuations in profitability, unforeseen regulatory changes, and emerging taxes that could potentially disrupt established business models.
Updates on Crypto Taxation
This year, the Turkish government strengthened its regulatory framework for cryptocurrency exchanges, implementing comprehensive legislation aimed at enhancing oversight. In June, Turkey’s Finance Minister Mehmet Simsek denied rumors of plans to tax profits from stocks and cryptocurrencies. Nonetheless, he did suggest that a “very limited” transaction fee might be introduced in the future, indicating a cautious approach to taxation.
Simsek stated, “We have not currently included taxation on profits for crypto assets and the stock market in our agenda. There may be a very limited fee or taxation on a transaction-based basis,” signaling a potential shift in the taxation landscape for digital assets in Turkey.