The cryptocurrency market in Turkey is expected to expand since both domestic and foreign businesses are very interested in it before new laws are passed.
Cryptocurrency businesses wishing to operate in the country are showing a marked increase in interest. According to new legislation, 47 cryptocurrency companies have sought licenses, as the Turkish Capital Markets Board (CMB) revealed.
The CMB reports that well-known exchanges, including Bitfinex, Binance TR, and OKX TR, are involved in this flood. Notable exchanges must submit license applications, including MEXC, Still, KuCoin, and Bybit.
A new law piques curiosity.
The influx of applications coincides with the July 2 introduction of the “Law on Amendments to the Capital Markets Law.” This bill aims to give Turkish crypto asset service providers a regulatory framework.
The CMB made it clear in its announcement that three companies have filed for liquidation, and those whose applications contained inaccurate or insufficient information are still being investigated.
In its release, the CMB clarified that being listed on the “List of Those in Operation” does not imply official approval. After secondary legislation has passed, companies are still required to request official board approval. When companies correct errors, or the CMB wraps up its investigation, the list will be updated.
There are laws to control the industry, even though Turkey still needs full crypto legislation. In January, Mehmet Simsek, the minister of finance and treasury for Turkey, said that the country’s cryptocurrency laws were almost finished. However, the much-anticipated draft law still needs to be presented to lawmakers.
Turkey’s regulatory environment
The industry is not entirely unregulated, even though parliament still needs to create explicit legislation on cryptocurrencies. There are two primary laws about cryptocurrency in Turkey.
The first, established in 2021 by the Central Bank of the Republic of Turkey, forbids using cryptocurrencies, such as Bitcoin BTC$60,870, for financial transactions since they aren’t regarded as legitimate money.
The Financial Crimes Investigation Board oversees the implementation of Anti-Money Laundering regulations, which are covered by the second regulation. Exchanges are required by this rule to get Know Your Customer information to stop illegal actions, including financing terrorism and money laundering.
Turkey’s proactive approach to regulating cryptocurrencies is unsurprising, given its substantial influence in the global bitcoin sector. The nation boasts one of the highest rates of cryptocurrency usage globally.
With an estimated $170 billion in trading volume, Turkey is the fourth-largest cryptocurrency market in the world, according to data from Chainalysis. Turkey now stands above significant cryptocurrency markets like Germany, Russia, Canada, Vietnam, and Thailand.
The increase in license applications indicates Turkey’s rising stature in cryptocurrency and dedication to creating a safe and regulated market.