The Turkish cryptocurrency landscape is experiencing a major transformation as prominent firms like Coinbase and KuCoin compete to obtain business licenses in the country.

This surge in applications follows regulatory updates by the Turkish Capital Markets Board (CMB), marking a critical juncture for the nation’s burgeoning crypto sector.

A growing list of applicants

On Aug. 9, the CMB announced that 47 cryptocurrency companies had initially applied for licenses under new regulatory frameworks. This list, however, has now expanded to 76, with notable additions such as Coinbase, KuCoin, and Gate.io. 

Previously recognized entities like Binance, Bitfinex, and OKX were already part of the application process. The inclusion of these major players underscores Turkey’s rising status as a central hub for cryptocurrency activities.

Despite this progress, the CMB has clarified that being included in the “List of Those in Operation” does not equate to official authorization. Each company must still obtain formal approval from the board, which is contingent upon the enactment of secondary legislation. 

The list will be updated as companies address regulatory deficiencies or as the CMB concludes its investigations.

Regulatory landscape in Turkey

Turkey’s regulatory environment for cryptocurrencies is still in a state of flux. While comprehensive crypto legislation is not yet in place, existing regulations govern market activities. 

Turkish Treasury and Finance Minister Mehmet Simsek indicated in January that local crypto legislation was nearing completion, yet the anticipated draft has not been introduced to parliament. 

This regulatory uncertainty has not deterred firms from seeking licenses, reflecting the sector’s optimism and the country’s strategic importance in the global crypto market. 

The wave of applications follows the implementation of the “Law on Amendments to the Capital Markets Law,” which came into effect on July 2. This law aims to provide a regulatory framework for crypto asset service providers in Turkey.

According to Chainalysis, Turkey ranks as the fourth-largest crypto market worldwide, with an estimated trading volume of $170 billion. This volume places Turkey ahead of significant markets like Russia, Canada, Vietnam, Thailand, and Germany.

The surge in license applications signals Turkey’s growing prominence in the cryptocurrency sector and its commitment to establishing a regulated and secure crypto market.