Turkey's cryptocurrency landscape is on the verge of substantial growth as both local and international companies express heightened interest in operating within the country, spurred by new regulatory developments.
Turkey’s cryptocurrency landscape is on the verge of substantial growth as both local and international companies express heightened interest in operating within the country, spurred by new regulatory developments. The Turkish Capital Markets Board (CMB) recently announced a surge in applications from 47 cryptocurrency companies seeking licenses under the newly established regulations.
Among the applicants are major exchanges like Bitfinex, Binance TR, and OKX TR, signaling their readiness to comply with Turkey’s evolving regulatory framework. However, prominent exchanges such as Coinbase, Bybit, KuCoin, MEXC, and Gate.io have not yet filed their applications.
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New Legislation Ignites Industry Interest
This influx of license applications follows the recent enactment of the “Law on Amendments to the Capital Markets Law,” which took effect on July 2. This legislation is designed to establish a clear regulatory framework for crypto asset service providers in Turkey, aiming to ensure a secure and transparent market.
The CMB clarified that while three companies have opted for liquidation, the applications of others who provided incomplete or insufficient information are still under scrutiny. The board also emphasized that being listed as “in operation” does not imply full authorization. Companies must obtain formal approval from the CMB following the adoption of additional secondary legislation. The list of approved companies will be updated as they rectify deficiencies or as the CMB concludes its investigations.
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Turkey’s Regulatory Landscape
Despite the absence of comprehensive crypto legislation in Turkey, the market operates under a set of existing regulations. Turkish Treasury and Finance Minister Mehmet Simsek announced in January that local crypto legislation was nearing completion, although the anticipated draft has yet to be introduced in parliament.
Currently, Turkey has two primary regulations concerning cryptocurrencies. The first, issued by the Central Bank of the Republic of Turkey in 2021, prohibits the use of cryptocurrencies like Bitcoin for payments, as they are not recognized as legal tender. The second regulation, overseen by the Financial Crimes Investigation Board, focuses on Anti-Money Laundering (AML) measures, requiring exchanges to collect Know Your Customer (KYC) data to combat illicit activities, including money laundering and terrorism financing.
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Given Turkey’s significant role in the global cryptocurrency market, its proactive approach to regulation is expected. The country boasts one of the highest adoption rates of cryptocurrencies worldwide. According to Chainalysis data, Turkey ranks as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, surpassing other major markets like Russia, Canada, Vietnam, Thailand, and Germany.
The increase in license applications underscores Turkey’s rising influence in the cryptocurrency sector and its dedication to fostering a regulated and secure environment for digital assets.
