Turkey Expands List of Crypto Licenses Including Coinbase, Kucoin, Gate

As Turkey strengthens its regulatory framework for the cryptocurrency sector, international cryptocurrency giants are entering a growing market.

Coinbase, which serves 103 million users in 100 countries, KuCoin and other major exchanges have been granted licenses to operate under the country’s strict new regulations, making Turkey a critical hub for crypto activity in the region.

Crypto Market Expanding in Türkiye

• Increase in licensed trade: The Capital Markets Board of Turkey (CMB) has expanded the list of licensed cryptocurrency exchanges from 47 to 76, now including major global players such as Coinbase, KuCoin, Gate.io, Binance, Bitfinex and OKX. The increase in the number of licenses follows the implementation of new regulations in July 2024 aimed at strengthening oversight of the cryptocurrency sector.
• Market Leadership: Turkey leads the Middle East and North Africa (MENA) region in terms of cryptocurrency trading volume, as highlighted in a Chainalysis report published in September 2023. The country’s growing prominence in the crypto space has attracted considerable interest from international and local exchanges, including BtcTurk and Midas.

Coinbase’s Strategic Expansion in Türkiye

• Temporary authorization in Türkiye: Coinbase, a US-based cryptocurrency exchange with a global user base of 103 million across 100 countries, has been granted temporary authorization to operate in Turkey under the name “Coinbase Turkey Yazılım Teknolojileri AS.” The platform, known for offering over 220 cryptocurrencies, records an average daily trading volume of Rp25 billion.
• Compliance with new regulations: Under Turkey’s amended Capital Markets Law, all foreign cryptocurrency exchanges must register with the CMB to operate legally. Coinbase’s inclusion in the approved list marks its compliance with the new regulatory requirements, a critical step in a challenging U.S. regulatory environment.

What is the regulatory environment in Türkiye?

• Strict licensing criteria: The CMB has set comprehensive criteria for cryptocurrency exchanges wishing to operate in Turkey, requiring detailed operational information and compliance with strict regulatory standards. This effort aims to ensure investor protection and promote a safer business environment in the country.
• Priority to investor protection: The new Turkish regulations, which include provisions for reporting cryptocurrency seizures and legal cooperation, are part of a broader trend in the region where governments are taking cryptocurrency regulation more seriously as the market matures.

What was the rumor about Coinbase, BtcTurk?

• Potential acquisition of BtcTurk: Over the past few years, rumors have swirled that Coinbase might acquire BtcTurk, Turkey’s largest cryptocurrency exchange, for a whopping $3.2 billion. While this deal has yet to materialize, the speculation underscores the strategic importance of the Turkish market for global cryptocurrency players.
• Global Regulatory Trends: Turkey’s approach to cryptocurrency regulation mirrors global trends, such as the European Union’s MiCA law, which requires exchanges to delist certain products to remain compliant. The move underscores the growing importance of regulation in an evolving cryptocurrency market.