Rising Crypto License- New Regulations Prompt Surge in Crypto License Applications in Turkey
Rising Crypto License– Turkey is seeing a notable increase in applications from cryptocurrency companies eager to operate within the country. The Turkish Capital Markets Board (CMB) has reported that 47 cryptocurrency firms have sought licenses under the new regulations.
Among the applicants are prominent exchanges like Bitfinex, Binance TR, and OKX TR. However, some major exchanges, including Coinbase, Bybit, KuCoin, MEXC, and Gate.io, have yet to submit their license applications.
Turkey Sees Surge in Crypto License Applications After New Regulations
Following the implementation of the Law on Amendments to the Capital Markets Law on July 2, Turkey has experienced a significant surge in applications from cryptocurrency companies seeking to operate in the country. This new law aims to establish a regulatory framework for crypto asset service providers.
The Turkish Capital Markets Board (CMB) has announced that 47 companies have applied for licenses under these new regulations. However, the CMB also noted that three companies have declared liquidation, and applications with incomplete or insufficient information are still under review.
The CMB clarified that being included in the List of Those in Operation does not mean a company is officially authorized. Firms must obtain formal approval from the board, which will come after secondary legislation is enacted. The list will be updated as companies rectify deficiencies or as the CMB completes its investigations.
Although Turkey currently lacks comprehensive crypto legislation, existing regulations still govern the market. Turkish Treasury and Finance Minister Mehmet Simsek mentioned in January that local crypto legislation was nearing completion, but the draft legislation has yet to be presented to parliament.
Current Regulatory Framework for Cryptocurrency in Turkey
Although specific cryptocurrency regulations have not yet been established by the Turkish parliament, the market is not entirely unregulated. Turkey has implemented two main crypto-related regulations to govern the sector.
The first regulation, introduced by the Central Bank of the Republic of Turkey in 2021, prohibits the use of cryptocurrencies like Bitcoin for payments, as they are not recognized as legal tender. The second regulation involves Anti-Money Laundering (AML) measures, overseen by the Financial Crimes Investigation Board. This regulation mandates that cryptocurrency exchanges collect Know Your Customer (KYC) data to combat illicit activities such as money laundering and terrorism financing.
Turkey’s proactive approach to cryptocurrency regulation reflects its significant role in the global crypto economy. The country boasts one of the highest cryptocurrency adoption rates in the world. According to Chainalysis data, Turkey is the fourth-largest crypto market globally, with an estimated trading volume of $170 billion. This positions Turkey ahead of major crypto markets like Russia, Canada, Vietnam, Thailand, and Germany.
The recent surge in license applications highlights Turkey’s growing influence in the cryptocurrency sector and its dedication to creating a regulated and secure crypto market.
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