Turkey’s new regulations have led to 47 crypto companies, including Bitfinex and Binance TR, applying for licenses, while major exchanges like Coinbase and KuCoin have not yet applied.
There has been a substantial increase in the number of cryptocurrency companies interested in operating in Turkey. The Turkish Capital Markets Board (CMB) has disclosed that 47 cryptocurrency companies have submitted applications for licenses in accordance with the recently implemented regulations.
Well-known exchanges, including Bitfinex, Binance TR, and OKX TR, are included in this influx, according to the CMB. Nevertheless, a number of reputable exchanges, including Coinbase, Bybit, KuCoin, MEXC, and Gate.io, have not yet submitted applications for licenses.
New Law Ignites Interest
The surge in applications is a direct result of the “Law on Amendments to the Capital Markets Law,” which was implemented on July 2. The objective of this legislation is to establish a regulatory framework for crypto asset service providers in Turkey.
The CMB clarified in its statement that three companies have declared liquidation, and the applications of those who provided fragmentary or inadequate information are still under review.
The CMB’s announcement underscored that official authorization is not equivalent to inclusion in the “List of Those in Operation.” Companies are still required to obtain formal sanction from the board subsequent to the implementation of secondary legislation. The list will be revised as the CMB concludes its investigations or companies address deficiencies.
Regulations are in existence to regulate the market, despite the absence of comprehensive crypto legislation in Turkey at present.
In January, Turkish Treasury and Finance Minister Mehmet Simsek suggested that local crypto legislation was on the brink of being finalized. In spite of this, the proposed legislation that is anticipated has not yet been introduced in parliament.
Turkey Regulatory Framework
Nevertheless, the cryptocurrency market is not entirely unregulated, despite the fact that parliament has not yet established specific regulations. Turkey has implemented two primary regulations regarding cryptocurrency.
The Central Bank of the Republic of Turkey established the first regulation in 2021, which prohibits the use of cryptocurrencies such as Bitcoin for payment purposes, as they are not considered legal tender.
The Financial Crimes Investigation Board supervises Anti-Money Laundering measures, which are the subject of the second regulation. In order to prevent illicit activities, including money laundering and terrorism financing, this regulation mandates that exchanges acquire Know Your Customer data.
Turkey’s proactive approach to cryptocurrency regulation is not unexpected, given its substantial influence in the global crypto economy. The country has one of the highest adoption rates of cryptocurrencies in the globe.
Turkey is the fourth-largest crypto market globally, with an estimated transaction volume of $170 billion, as indicated by data from Chainalysis. This positions Turkey in advance of significant crypto markets such as Canada, Vietnam, Thailand, Germany, and Russia.
Turkey’s increasing prominence in the cryptocurrency sector and its dedication to the establishment of a secure and regulated crypto market are indicated by the increase in license applications.
