Crypto Exchanges Flocking Towards Turkey: Coinbase, KuCoin Apply for Licence

Coinbase, KuCoin, Gate.io, and several other small and large cryptocurrency brands are now attempting to obtain business licences in Turkey, according to an updated list published by the Capital Markets Board of Türkiye.

Top Companies Seek Turkish Licence

First published on August 9, the list included 47 names of cryptocurrency companies. However, it was later updated to add more names, bringing the total to 76.

“The list published here has been created to inform the public about the organisations that declared that they will operate in accordance with the Temporary Article 11 of the Capital Markets Law No. 6362 (Law),” a preface to the list of the companies noted (translated from Turkish).

“In this context, the existence of the ‘List of Those Operating’ does not mean that the organisations included in this list are authorised in accordance with the relevant legislation.”

A part of the list of crypto firms seeking Turkish license; Source: Capital Markets Board of Türkiye

No Crypto-Specific Regulation

The names appeared when cryptocurrency regulations in Turkey were in a state of flux. The industry is being regulated by existing market regulations as there is no specific crypto regulation framework in the country. In January, the country’s Treasury and Finance Minister Mehmet Şimşek indicated the completion of proposed crypto-specific legislation; however, no draft has yet been revealed.

Interestingly, Binance recently terminated all its marketing activities in the country, citing regulatory compliance. Although Turkish clients can still access the largest crypto exchange by trading volume, it has decided to gradually turn off Turkish language options within three months.

Binance’s name is also in the latest list of cryptocurrency companies published by the Capital Markets Board of Türkiye. Other notable names are Bitfinex, Crypto.com, and BitBNS.

Turkey has also witnessed a massive surge in demand for cryptocurrencies. The country ranks fourth in terms of trading volume, with $170 billion, only behind the United States, India, and the United Kingdom.

MENA countries by crypto trading volumes; Source: Chainalysis

The rise in cryptocurrency demand can be correlated with Turkey’s struggling economy. The value of the Turkish lira has plummeted by more than 82 per cent against the US dollar in the last five years, now at its lowest level ever.