Crypto Firms Like Binance, Coinbase, and Bitfinex Apply for Licenses in Turkey
Cryptocurrency is growing fast around the world, and Turkey is no exception. Big names like Binance, Coinbase, and Bitfinex, along with 73 other firms, have applied for licenses to operate in Turkey as crypto asset service providers. This move comes after the Turkish government enacted a new law in June 2023 that requires all crypto companies to secure approval from the Capital Markets Board (CMB), Turkey’s main financial regulator.
Turkey’s New Crypto Regulations
In June 2023, the Turkish government introduced new regulations for cryptocurrencies. The law, known as the “Law on Amendments to the Capital Markets Law,” sets out strict rules for crypto firms. These rules aim to bring more structure and safety to the market, protecting consumers and preventing financial crimes like money laundering and market manipulation.
The Capital Markets Board (CMB), which is responsible for overseeing these regulations, published a list of 76 firms that are following the new rules. However, it’s important to note that just because a company is on this list, it doesn’t mean they are fully authorized to operate yet. They still need to go through a detailed approval process.
Impact of EU’s MiCA Regulation
Turkey’s new crypto regulations are quite similar to the European Union’s upcoming Markets in Crypto-Assets Regulation (MiCA). MiCA is expected to take effect in December 2024 and will set out rules on crypto asset supervision, consumer protection, and environmental safeguards. Like the Turkish law, MiCA also aims to fight financial crimes such as money laundering and terrorist financing.
The Growth of Crypto Adoption in Turkey
Cryptocurrency adoption in Turkey has been on the rise over the last decade. A report by Chainalysis, a digital asset analytics firm, shows that Turkey ranked fourth in the world for raw crypto transaction volume between mid-2022 and mid-2023. This puts Turkey behind only the United States, India, and the United Kingdom. Additionally, Turkey ranked 12th on Chainalysis’ Global Crypto Adoption Index, highlighting its growing influence in the crypto world.
In 2024, user penetration in Turkey’s crypto market is expected to reach 30.24%, and by 2025, this figure is set to grow even more. As more local and international exchanges enter the market, Turkey’s crypto adoption is likely to continue its upward trend. The increasing number of users means that the average revenue per user in Turkey is projected to hit $66.1 by 2024, with total revenue reaching $1.7 billion.
However, despite the rising user base, revenue projections for 2025 suggest a slight decline. But with big players like Coinbase and KuCoin entering the market, these estimates could change. The presence of these major exchanges may boost the market, leading to higher crypto trading volumes and more active users.
BtcTurk: Turkey’s Leading Crypto Exchange
When talking about crypto in Turkey, it’s impossible to ignore BtcTurk, the country’s largest cryptocurrency trading platform. BtcTurk was established on July 1, 2013, and allows users to buy and sell Bitcoin and other cryptocurrencies with Turkish Lira. Managed by Elliptik Software and Trade Inc., BtcTurk serves over 5 million users and has a team of more than 800 employees. The platform operates 24/7, offering a secure and transparent trading experience, thanks to advanced security measures and regular audits by a major international auditing firm.
BtcTurk has also played a significant role in promoting crypto adoption in Turkey. The platform makes it easy for users to withdraw Turkish Lira to local bank accounts and offers a specialized platform, BtcTurk | Kripto, for experienced users. Recognized for its leadership in the industry, BtcTurk was ranked as a top financial institution in a 2022 Zendesk user satisfaction survey.
Beyond crypto trading, BtcTurk is deeply involved in supporting Turkey’s ecosystem. The company has made significant investments in sports and technology and is a key sponsor of several national sports teams, including the Women’s and Men’s National Football Teams and the National Volleyball Teams. BtcTurk even sponsored 21 athletes at the Tokyo Olympics, showing its commitment to supporting the next generation of talent.
What Coinbase and KuCoin’s Entry Means for Turkey’s Crypto Market
The recent applications from Coinbase and KuCoin to operate in Turkey mark a significant milestone in the country’s crypto journey. According to the Capital Markets Board (CMB), 29 new exchanges have applied for licenses since August 2023, bringing the total number of applicants to 76. This influx of applications shows just how attractive the Turkish crypto market has become.
The entry of these major players is likely to have a big impact on Turkey’s crypto market. With more legally compliant exchanges operating in the country, we can expect to see a rise in the number of users, more active addresses, and an increase in crypto trading volume. This could help reverse the projected decline in revenue for 2025, bringing in more money and more users.
In 2023 alone, Turkey’s crypto trading volume reached $34.9 billion, according to Mercuryo. This puts Turkey ahead of other countries in the region, such as Indonesia, by $3.6 billion. As more exchanges enter the market, this figure is only expected to grow.
The Changing Demographics of Crypto Users in Turkey
As crypto adoption in Turkey continues to rise, so too does the diversity of its user base. In the past, most crypto users in Turkey were male, but the market is now attracting a broader range of people. Chainalysis reports that adults over the age of 30 make up more than 52% of Turkey’s crypto users and investors, indicating that the market is appealing to a more mature audience.
With the entry of Coinbase, KuCoin, and other major exchanges, we can expect this trend to continue. More people from different demographics are likely to join the crypto space, further expanding Turkey’s role in the global cryptocurrency market.
Turkey’s crypto market is experiencing significant growth, driven by new regulations and the entry of major players like Binance, Coinbase, Bitfinex, and KuCoin. As more firms apply for crypto asset service provider licenses under the new law, the market is set to become more structured and secure. With rising crypto adoption and a growing user base, Turkey is poised to become a major player in the global cryptocurrency landscape.
