The Turkish crypto market is undergoing a serious upheaval with the arrival of the sector’s most important companies. Industry giants including Coinbase and KuCoin are jostling for business licenses in the country, which is emerging as the fourth largest crypto market in the world.
Turkey, the new playground for crypto giants
The Turkish Capital Markets Board (CMB), the country’s financial regulator, recently introduced changes to its regulations. These changes now require companies in the crypto the obligation to obtain specific licenses to operate legally in Turkey. This decision, aimed at framing and legitimizing the crypto market, triggered a veritable stampede of major players in the sector.
In the space of just a few weeks, the number of applicants for these licenses increased dramatically, from 47 to 76. These new applicants include industry heavyweights such as Coinbase, KuCoin and Gate.io, which join established players such as Binance, Bitfinex and OKX having filed their applications earlier.
This meteoric growth in the number of applicants testifies to the undeniable appeal of the Turkish market for crypto companies. And with good reason: the Turkey is now the world’s 4th largest crypto market with an estimated trading volume of $170 billion. This performance placed the country ahead of reputable markets such as Russia, Canada, Vietnam, Thailand and even Germany.
A regulatory framework under construction
Despite the absence of comprehensive crypto legislation, the Turkish market continues to attract investors. The Minister of Treasury and Finance, Mehmet Simsek suggested that the regulations were being finalized, although the bill had not yet been presented to parliament.
This regulatory uncertainty has not dampened the industry’s enthusiasm. On the contrary, it seems to have accelerated the race for licenses, as companies seek to position themselves strategically in this promising market.
The recent enactment of the “Capital Markets Amendment Act” on July 2 marks an important milestone. It aims to establish a regulatory framework for crypto asset service providers in Turkey, thereby strengthening investor and user confidence.
However, the road to full regulation remains fraught with difficulties. The recent hack of BtcTurk the country’s largest crypto exchange platform, with a theft of $54 million, underlines the urgency of implementing robust security measures.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
