Major Firms Pursue Cryptocurrency Licenses in Turkey

The Turkish cryptocurrency landscape is undergoing significant transformation as leading companies like Coinbase and KuCoin seek business licenses within the country. This activity reflects a notable shift in the regulatory environment, driven by ongoing updates from the Turkish Capital Markets Board (CMB).

Increase in License Applications

On August 9, the CMB revealed that 47 cryptocurrency firms had initially submitted applications for licenses under new regulatory standards. This number has since risen to 76, with well-known names like Coinbase, KuCoin, and Gate.io coming on board.

Familiar entities such as Binance, Bitfinex, and OKX were already involved in the licensing process prior to this recent swell. The entrance of these major players highlights Turkey’s emerging role as a hub for cryptocurrency activity.

It’s important to note that being listed in the “List of Those in Operation” does not imply official approval. Each applicant must secure formal authorization from the board, which requires the enactment of secondary laws and regulations. The list will be revised as companies rectify any regulatory shortcomings or as the CMB completes its assessments.

Status of Cryptocurrency Regulation in Turkey

The regulatory framework governing cryptocurrencies in Turkey remains in development. Although comprehensive legislation is absent, current regulations do oversee various market activities.

In January, Turkish Treasury and Finance Minister Mehmet Simsek mentioned that local cryptocurrency legislation was approaching finalization; however, the expected draft has yet to be presented to parliament.

This regulatory ambiguity has not deterred companies from applying for licenses, indicating a strong sense of optimism within the sector and highlighting Turkey’s strategic relevance in the global cryptocurrency market.

The recent influx of applications aligns with the implementation of the “Law on Amendments to the Capital Markets Law,” which took effect on July 2 and aims to establish a regulatory framework for crypto asset service providers in Turkey.

According to Chainalysis, Turkey currently stands as the fourth-largest cryptocurrency market worldwide, boasting an approximate trading volume of $170 billion, surpassing significant markets such as Russia, Canada, Vietnam, Thailand, and Germany.

This rising wave of license applications underscores Turkey’s increasing importance in the cryptocurrency domain and its commitment to fostering a regulated and secure crypto market.