Turkey's cryptocurrency market is rapidly heating up, attracting several major cryptocurrency companies, including Coinbase and KuCoin, to compete for business licenses in the country. This phenomenon is a direct result of the recent regulatory changes introduced by the Capital Markets Board (CMB) of Turkey. According to the new regulations, any cryptocurrency company that wishes to do business in Turkey must apply for a license.
Since CMB revealed on August 9 that 47 cryptocurrency companies had initially applied for licenses, the number has quickly increased to 76, including well-known companies such as Coinbase, KuCoin and Gate.io. In addition, companies already operating in the market such as Binance, Bitfinex and OKX have also joined the application process.
While the growth in the number of applicants shows a strong interest in the Turkish cryptocurrency market, the CMB made it clear that being included in the “list of operating companies” does not mean that formal authorization has been obtained. Each company still needs to be formally approved by the board of directors, and this process will depend on the promulgation of relevant secondary legislation.
Turkey's cryptocurrency regulatory environment is still evolving. Although comprehensive cryptocurrency legislation has not yet been finalized, existing regulations have already provided some supervision of market activities. In January this year, Turkey's Minister of Finance and Finance Mehmet Simsek said that local cryptocurrency legislation was about to be completed, but the expected draft has not yet been submitted to parliament.
Companies continue to apply for licenses amid regulatory uncertainty, demonstrating industry optimism and underscoring Turkey’s strategic importance in the global cryptocurrency market. The surge in applications came after the Capital Markets Law Amendment Act came into effect on July 2, establishing a regulatory framework for crypto asset service providers in Turkey.
It is worth noting that Turkey is the fourth largest cryptocurrency market in the world, with an estimated trading volume of $170 billion, surpassing well-known markets such as Russia, Canada, Vietnam, Thailand and Germany. However, market development also comes with risks. Earlier this year, Turkey's largest cryptocurrency exchange BtcTurk was hacked and lost funds worth $54 million. This incident reminded people that security remains a key issue while the market grows.
