Expansion Of Turkey's Crypto Market: More Licensed Exchanges

The Turkish crypto market has witnessed a notable transformation, accompanied by increased licensed transactions. After the California Medical Board (CMB) implemented stricter regulations in July 2024, the number of approved changes rose from 47 to 76. Significant international platforms such as Coinbase, KuCoin, Binance, and OKX have entered the market, indicating Turkey’s growing dominance in the global cryptocurrency.

The increase in foreign investors can be ascribed to Turkey’s prominent position as a pioneer in cryptocurrency transaction volume within the Middle East and North Africa (MENA) region, in conjunction with a recently established regulatory framework that establishes the guidelines for legitimate cryptocurrency businesses.

In Sept 2023, a Chainalysis research identified Turkey as the MENA region’s frontrunner in cryptocurrency transactions. This established state and a more transient regulatory environment have created a dynamic environment for both local and international changes. Domestic players like Bitcoin Turk and Midas are already doing well, and the global gaming industry is expected to continue growing at an accelerated rate.

With over 103 million users across 100 countries, Coinbase, a well-known US-based cryptocurrency exchange, exemplifies the success of the digital finance industry. Offering a wide range of over 220 digital assets, Coinbase has a notable daily trading volume of ₺25 billion (Turkish Lira). The exchange, consequently, obtained temporary authorization from Turkey’s Civil Marks Board (CMB) to function as “Coinbаse Turkеy Yаzılım Tеknolojilеri AS.”

Coinbase’s Turkish Entry & Global Compliance Efforts

This regulatory support is in line with a global trend in which governments set up more and more frameworks to regulate the growing digital sector. To function lawfully, foreign cryptocurrency exchanges must register with the CMB following Turkey’s “Law on Amendments to the Capital Markets Law.” With the continued scrutiny it endures in the US, Coinbase’s approval demonstrates its dedication to regulatory compliance.

Coinbase’s recent seven-year absence demonstrates its ability to adjust to various regulatory contexts before returning to Hawaii. This new authorization in Turkey aids Coinbase’s international expansion and highlights its commitment to regulatory compliance.

Turkey’s approach to regulations reflects a global movement towards more stringent supervision. To guarantee compliance, exchanges must, for instance, delete particular items under the European Union’s Markets in Crypto Assets (MiCA) law. The increased regulatory focus highlights the market’s growing maturity. It also stresses the need to balance innovation with investor security.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.