Crypto license applications surges in Turkey amid new regulations

Turkey is currently experiencing a surge in interest from cryptocurrency companies seeking to establish operations within the country. The Turkish Capital Markets Board (CMB) has reported that 47 cryptocurrency firms have applied for licenses under the new regulatory framework.

Among the applicants are prominent exchanges such as Bitfinex, Binance TR, and OKX TR. However, other major players like Coinbase, Bybit, KuCoin, MEXC, and Gate.io have not yet submitted their license applications.

The wave of applications comes in the wake of the "Law on Amendments to the Capital Markets Law," which took effect on July 2. This legislation aims to create a clear regulatory framework for crypto asset service providers in Turkey.

The CMB has clarified that three companies have declared liquidation, and those with incomplete or insufficient information are still under review. The board emphasized that inclusion in the "List of Those in Operation" does not constitute official authorization. Companies must still obtain formal approval from the board after the implementation of secondary legislation. The list will be updated as companies rectify deficiencies or as the CMB completes its investigations.

Regulatory Landscape in Turkey

Despite the absence of comprehensive crypto legislation, the crypto industry within Turkey is not functioning without regulations. Turkish Treasury and Finance Minister Mehmet Simsek suggested in January that local crypto legislation was close to completion. However, the expected draft legislation has yet to be introduced in parliament.

Turkey currently operates under two main crypto-related regulations. The first – established 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 – pertains to Anti-Money Laundering (AML) measures, requiring exchanges to collect Know Your Customer (KYC) data to combat illicit activities like money laundering and terrorism financing.

Role of Turkey in the Global Crypto Market 

Turkey’s proactive approach to cryptocurrency regulation aligns with its significant role in the global crypto economy. The country has one of the highest cryptocurrency adoption rates in the world. According to Chainalysis data, Turkey ranks as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, placing it ahead of other major markets like Russia, Canada, Vietnam, Thailand, and Germany.

The surge in license applications underlines Turkey’s growing dominance in the cryptocurrency sector and its dedication to establishing a regulated and secure crypto market.

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