The Turkish cryptocurrency market is changing as prominent firms like KuCoin and Coinbase compete to secure Turkish crypto licenses.
The Turkish crypto market is on the brink of substantial transformation as the CMB updates the list and companies strive to comply with regulatory mandates.
This application increases results from regulatory updates by the Turkish Capital Markets Board (CMB), representing a critical juncture for the nation’s emerging crypto sector.
A growing applicant pool for Turkish Crypto Licences
The CMB announced on August 9 that 47 cryptocurrency companies had submitted initial license applications under the new regulatory frameworks. Coinbase, KuCoin, and Gate.io are notable additions to this list, which has now grown to 76.
The application process already included entities that had been previously recognized, such as Binance, Bitfinex, and OKX. Including these significant players emphasizes the rise of Turkey as a central hub for cryptocurrency activities.
Despite this progress, the CMB has clarified that being included in the “List of Those in Operation” does not constitute official authorization. Formal sanction from the board is still required for each company, and it is contingent upon the enactment of secondary legislation.
The list will be revised as the CMB concludes its investigations or companies address regulatory deficiencies.
Turkey’s regulatory environment
The regulatory environment for cryptocurrencies in Turkey remains in flux. Although no comprehensive crypto legislation is in force, market activities are regulated by existing regulations.
The anticipated draft of local crypto legislation has not been introduced to parliament, even though Turkish Treasury and Finance Minister Mehmet Simsek indicated in January that it was nearing completion.
The sector’s optimism and the country’s strategic significance in the global crypto market are reflected in the fact that firms have not been discouraged from pursuing licenses despite the regulatory uncertainty.
The surge in applications is a direct result of the “Law on Amendments to the Capital Markets Law,” which was implemented on July 2. This legislation aims to establish a regulatory framework for crypto asset service providers in Turkey.
Turkey is the fourth-largest crypto market globally, with an estimated transaction volume of $170 billion, according to Chainalysis. In this magnitude, Turkey surpasses substantial markets such as Canada, Vietnam, Germany, Thailand, and Russia.
The increase in license applications indicates Turkey’s increasing prominence in the cryptocurrency sector and its dedication to establishing a secure and regulated crypto market.
