Turkish Crypto Market Heats Up as Coinbase and KuCoin Apply for Licenses

Turkey’s cryptocurrency market is heating up as major players, including Coinbase and KuCoin, vie for business licenses in the country.

The wave of new applications comes after recent regulatory changes introduced by the Turkish Capital Markets Board (CMB), which requires crypto companies eager to establish operations in the country to apply for licenses.

On August 9, the CMB revealed that 47 cryptocurrency firms had initially applied for licenses under the new regulatory framework.

However, this number has now surged to 76, with prominent names like Coinbase, KuCoin, and Gate.io joining the race.

Binance, Bitfinex, OKX Already Applied for Licenses

Established entities such as Binance, Bitfinex, and OKX had already been part of the process.

While the growing list of applicants reflects the increasing interest in Turkey’s crypto market, the CMB has made it clear that inclusion in the “List of Those in Operation” does not equate to official authorization.

Each company must still secure formal approval from the board, a process that hinges on the enactment of secondary legislation.

The CMB will continue to update the list as companies address regulatory gaps or as the board completes its evaluations.

Turkey’s regulatory landscape for cryptocurrencies remains in a state of evolution.

Although comprehensive crypto legislation has yet to be finalized, existing regulations currently govern market activities.

In January, Turkish Treasury and Finance Minister Mehmet Simsek suggested that local crypto legislation was nearing completion, but the anticipated draft law has not yet been presented to parliament.

Despite this regulatory uncertainty, companies continue to seek licenses, demonstrating the industry’s optimism and highlighting Turkey’s strategic importance in the global crypto market.

The surge in applications follows the enactment of the “Law on Amendments to the Capital Markets Law,” which came into force on July 2.

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

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.