47 Crypto Firms Apply for Licenses Under New Regulations in Turkey

Turkey is witnessing a remarkable uptick in interest from crypto companies eager to establish operations within its borders.

The Turkish Capital Markets Board (CMB) revealed that a total of 47 cryptocurrency firms have submitted applications for licenses under the recently implemented regulations.

Among the plethora of applicants are renowned exchanges such as Bitfinex, Binance TR, and OKX TR.

📑 REPORT: TURKEY SEES SURGE IN CRYPTO LICENSE APPLICATIONS AS NEW RULES TAKE EFFECT

Turkey's crypto market is heating up as 47 firms, including Bitfinex, Binance TR, and OKX TR, seek licenses under new regulations.

The rush follows a recent law aimed at regulating crypto asset… pic.twitter.com/Ghs44xCDS5

— JAKE (@JakeGagain) August 9, 2024

Notably absent from the list of applicants are major platforms like Coinbase, Bybit, KuCoin, MEXC, and Gate.io, who have yet to initiate the licensing process.

Trukey’s New Crypto Law Comes into Effect

The surge in applications comes in the wake of the enforcement of the “Law on Amendments to the Capital Markets Law,” which officially came into effect on July 2.

The legislation is designed to establish a regulatory framework for crypto asset service providers operating in Turkey.

In a recent statement, the CMB disclosed that three companies have declared liquidation, while those with incomplete or insufficient application details are currently under scrutiny.

The regulator emphasized that inclusion in the “List of Those in Operation” does not confer official authorization.

Companies are required to obtain formal approval from the board subsequent to the implementation of secondary legislation.

The list is set to evolve as companies rectify deficiencies or as the CMB concludes its evaluations.

While explicit cryptocurrency regulations are pending parliamentary approval, Turkey already enforces two primary crypto-related regulations.

The first directive, established by the Central Bank of the Republic of Turkey in 2021, prohibits the utilization of cryptocurrencies like Bitcoin for transactions due to their non-recognition as legal tender.

The second regulation pertains to Anti-Money Laundering protocols overseen by the Financial Crimes Investigation Board.

This mandate mandates exchanges to gather Know Your Customer data to combat illicit activities such as money laundering and terrorism financing.

Turkey Ranks as 4th Largest Crypto Market

It is worth noting that Turkey has a substantial influence within the global crypto landscape.

The nation ranks as the fourth-largest crypto market worldwide, boasting an estimated trading volume of $170 billion, eclipsing renowned markets like Russia, Canada, Vietnam, Thailand, and Germany.

Earlier this year, Turkey’s largest cryptocurrency exchange, BtcTurk, was hacked, with $54 million in funds stolen.

In the statement, BtcTurk revealed that the cyber attack occurred on June 22, 2024, leading to unauthorized withdrawals.

The breach impacted only some balances in the hot wallets of 10 cryptocurrencies, while the majority of assets stored in cold wallets remained secure.