Jai Sahu
Turkey has become a hotspot for crypto firms eager to establish their presence, with a significant number of companies applying for licenses under new regulations.
The Turkish Capital Markets Board (CMB) recently announced that 47 cryptocurrency companies have applied for licenses in response to the newly introduced regulations.
Among the applicants are prominent exchanges such as Bitfinex, Binance TR, and OKX TR, signaling strong interest from major players in the industry.
However, notable platforms like Coinbase, Bybit, KuCoin, MEXC, and Gate.io have not yet started the licensing process, raising questions about their plans in the Turkish market.
Turkey’s New Crypto Legislation Takes Effect
The surge in license applications follows the enforcement of the “Law on Amendments to the Capital Markets Law,” which officially came into force on July 2.
This new legislation aims to create a robust regulatory framework for crypto asset service providers operating within Turkey.
In a recent update, the CMB noted that three companies have declared liquidation, and those with incomplete or insufficient application information are currently under review.
The CMB emphasized that being listed in the “List of Those in Operation” does not equate to official authorization. Companies are required to secure formal approval from the board once secondary legislation is implemented.
The list is expected to change as companies address deficiencies or as the CMB completes its evaluations.
Existing Crypto Regulations in Turkey
While specific cryptocurrency regulations are still pending parliamentary approval, Turkey already has two main crypto-related regulations in place.
The first, issued by the Central Bank of the Republic of Turkey in 2021, prohibits the use of cryptocurrencies like Bitcoin for transactions, as they are not recognized as legal tender.
The second regulation focuses on Anti-Money Laundering (AML) measures, overseen by the Financial Crimes Investigation Board. This regulation mandates exchanges to collect Know Your Customer (KYC) data to prevent illegal activities such as money laundering and terrorism financing.
Turkey’s Growing Influence in the Global Crypto Market
Turkey has emerged as a significant player in the global cryptocurrency market, ranking as the fourth-largest market worldwide.
With an estimated trading volume of $170 billion, Turkey surpasses established markets like Russia, Canada, Vietnam, Thailand, and Germany in crypto trading activity.
Earlier this year, Turkey’s largest cryptocurrency exchange, BtcTurk, faced a major security breach, with $54 million in funds stolen. The cyberattack occurred on June 22, 2024, leading to unauthorized withdrawals. BtcTurk disclosed that the breach affected only a portion of the balances in the hot wallets of 10 cryptocurrencies, while most assets stored in cold wallets remained secure.