Turkey sees surge in crypto license applications amid new regulations

Turkey is experiencing a significant surge in interest from cryptocurrency companies looking to operate in the country. The Capital Markets Board (CMB) has announced that 47 cryptocurrency companies have applied for licenses under new regulations. 

According to the publication, this influx includes well-known exchanges such as Bitfinex, Binance TR, and OKX TR. However, notable exchanges like Coinbase, Bybit, KuCoin, MEXC, and Gate have not yet applied for licenses.

New law sparks interest

The wave of applications follows the implementation of the “Law on Amendments to the Capital Markets Law,” which came into effect on July 2. This law aims to provide a regulatory framework for crypto asset service providers in Turkey.

In its statement, the CMB clarified that three companies have declared liquidation, while the applications of those who provided incomplete or inadequate information are still under review.

The CMB’s announcement emphasized that inclusion in the “List of Those in Operation” does not equate to official authorization. Companies must still seek formal approval from the Board following the enactment of secondary legislation. The list will be updated as companies address deficiencies or the CMB completes its investigations.

Despite the current lack of comprehensive crypto legislation in Turkey, regulations are in place to govern the market. Turkish Treasury and Finance Minister Mehmet Simsek indicated in January that local crypto legislation was nearing completion. However, the anticipated draft legislation has yet to be introduced in parliament.

Regulatory framework in Turkey

However, even though Parliament has not yet established specific regulations for cryptocurrencies, the market is not completely unregulated. Turkey has two main crypto-related regulations in place.

The first, initiated by the Central Bank of the Republic of Turkey in 2021, prohibits using cryptocurrencies like Bitcoin (BTC) for payments, as they are not considered legal tender.

The second regulation pertains to Anti-Money Laundering (AML) measures, which are supervised by the Financial Crimes Investigation Board (MASAK). This regulation requires exchanges to collect Know Your Customer (KYC) data to prevent illicit activities such as money laundering and terrorism financing.

Turkey’s proactive stance on cryptocurrency regulation is no surprise, given its significant role in the global crypto economy. The country has one of the highest adoption rates of cryptocurrencies worldwide.

According to data from Chainalysis, Turkey ranks as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion. This places Turkey ahead of significant crypto markets like Russia, Canada, Vietnam, Thailand, and Germany.

The surge in license applications underscores Turkey’s growing prominence in the cryptocurrency sector and its commitment to establishing a regulated and secure crypto market.