Turkey announced 47 cryptocurrency companies that have applied for licenses, suggesting interest in the country’s market.

With growing interest among local and international crypto-related companies, Turkey’s digital asset economy could grow significantly.

Turkey Crypto Sector Poised For Growth

Turkey’s Capital Markets Board (CMB) said 47 crypto companies are queuing up for operating licenses under new regulations. Renowned exchanges on the list include Bitfinex, Binance TR, OKX TR, and Gate TR.

“The news source you cited has been removed due to market manipulation and misinformation following our complaint. As Gate TR, we have submitted our license application,” Gate TR’s marketing manager confirmed.

Gate TR is the Turkey-based counterpart of Gate.io. The same applies to Binance TR and OKX TR exchanges. Whether others like Bybit, KuCoin, and MEXC will also apply remains unknown.

This interest among crypto exchanges stems from the “Law on Amendments to the Capital Markets Law.” This new regulation, implemented on July 2, provides a regulatory framework for crypto asset service providers in Turkey.

“The institutions that applied to our Board and the institutions that declared that they will liquidate their activities are published in the ‘List of Those Active’ and the ‘List of Those Making a Liquidation Declaration’, respectively,” a CMB statement read.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Notably, a company featured in the “List of Those in Operation” does not equate to official authorization. This means firms will have to seek formal board approval following the implementation of secondary legislation. As the firms address deficiencies and the Turkish regulator completes its investigations, the list will see some updates.

The country has two primary crypto-related regulations in place. The Central Bank of the Republic of Turkey created one in 2021. This regulation generally banned crypto and Bitcoin, as Turkey does not regard cryptocurrencies as legal tender. The second, championed by the Financial Crimes Investigation Board, is a campaign against Money Laundering measures. 

The CMB’s statement, therefore, reflects the country’s efforts to regulate the sector in a market that previously displayed a lack of comprehensive regulations. Notably, despite the country’s previous less-than-ideal regulatory environment, it boasts one of the highest crypto adoption rates globally.

In a late 2023 report, Chainalysis ranked Turkey as the fourth-largest crypto market globally, effectively sidestepping Russia, Canada, Vietnam, Thailand, and Germany. This explains the surging interest among offshore cryptocurrency firms in tapping into the Turkish market.

Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide

“Turkey’s relatively high level of crypto adoption is not entirely surprising for several reasons. These include the country’s recent macroeconomic climate and its young population’s interest in innovation and technology,” Chainalysis reported, citing Yasin Oral, CEO and founder of Turkish cryptocurrency exchange Paribu.