Turkey's CMB reports 47 crypto firms applied for licenses under new regulations effective July 2, 2024.
Major exchanges like Bitfinex and Binance TR are among the applicants; Coinbase and Bybit haven't applied yet.
Turkey ranks as the fourth-largest global crypto market, with a $170 billion trading volume.
Turkey is currently experiencing a substantial surge in interest from cryptocurrency companies that are keen to operate within its borders. The Turkish Capital Markets Board (CMB) recently revealed that 47 cryptocurrency firms have sought licenses under the country's newly implemented legal frameworks.
Major exchanges lead the charge.
Bitfinex, Binance TR, and OKX TR are some of the most prominent exchanges that have applied. Other significant exchanges, like Coinbase, Bybit, KuCoin, MEXC, and Gate.io, have yet to file applications.
https://twitter.com/WuBlockchain/status/1821809046107910384
The rise in activity comes after the recent implementation of the "Law on Amendments to the Capital Markets Law," which went into effect on July 2, 2024. This new regulation creates a more regulated environment for cryptocurrency service providers in Turkey.
Regulatory scrutiny and compliance
Three companies have already declared liquidation, according to the CMB, while the remaining companies are currently being reviewed because their applications were either incomplete or insufficient. Additionally, the CMB noted that being classified as operational does not imply official authorization.
After secondary legislation is passed, firms must apply for the board's formal approval. The CMB intends to update the operational list as companies achieve regulatory standards or the board concludes its investigations.
Turkey’s Regulatory Framework
Despite the lack of comprehensive cryptocurrency legislation in Turkey, the market is not entirely unregulated. In 2021, the Central Bank of the Republic of Turkey announced a rule prohibiting use of cryptocurrencies as payment because they are not considered legal tender.
The Financial Crimes Investigation Board enforces anti-money laundering legislation. This legislation requires exchanges to collect Know Your Customer data. This is essential to avoid illicit actions.
Turkey's growing cryptocurrency market
Turkey's position on cryptocurrency regulation reflects its important contribution to the global crypto sector. Turkey has one of the greatest cryptocurrency adoption rates in the world. It is the fourth-largest crypto market. The estimated trade volume is $170 billion.
The surge of license applications demonstrates Turkey's growing prominence in the cryptocurrency sector, as well as its commitment to creating a secure and regulated market.
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