In recent developments, Turkey has been experiencing a massive increase in crypto license applications from cryptocurrency companies seeking to operate within the country.
With 47 crypto license applications, this recent happening within the Turkish crypto community underscores a strict regulatory landscape. Surprisingly, the upsurge of applications follows the "Law on Amendments to the Capital Markets Law" implementation on July 2.
CMB’s Update on Crypto License Applications in Turkey
Per a Capital Markets Board (CMB) update, the license application rally included exchanges like Bitfinex, Binance TR, and OKX TR. On the other hand, exchanges including Coinbase, KuCoin, Gate.io, MEXC, and Bybit have not joined the trend. CMB added that three companies have declared liquidation while applications containing incomplete or inadequate information are still under review.
Interestingly, the update also noted that inclusion in the “List of Those in Operation” is not equivalent to an official authorization. Hence, companies must follow a formal approach from the board following the implementation of the second legislation. It also hinted at updating the list of certified crypto outlets once the companies involved address their shortcomings or following CMB’s investigations’ completion.
An Overview of Turkey's Crypto Regulatory Landscape
While comprehensive crypto legislation is lacking in Turkey, regulations to govern the market are still emerging. Turkey currently has two main crypto-related guidelines in place. The country’s Central Bank introduced one in 2021. Later on, another one rolled out, courtesy of the Financial Crimes Investigation.
The former prohibits cryptocurrencies, including Bitcoin, as payment options. On its part, the latter mandates exchanges to collect Know Your Customer data to curb financial crimes ranging from money laundering to terrorism financing.
Turkey has emerged as one of the leading nations in cryptocurrency adoption. Therefore, it is unsurprising that it’s developing more stringent rules that might seem bureaucratic for crypto platforms. However, it remains a step in the right direction in ensuring that Turkish investors do not become victims of the rapidly evolving digital assets scam schemes.