Turkey is witnessing a notable increase in interest from cryptocurrency firms seeking to operate in the country.
The Turkish Capital Markets Board (CMB) has reported that 47 cryptocurrency companies have applied for licences under newly introduced regulations.
This influx of applications follows the July 2 enactment of the “Law on Amendments to the Capital Markets Law,” which establishes a regulatory framework for crypto asset service providers in the country.
Among the applicants are industry giants like Bitfinex, Binance TR, and OKX TR. However, other major players, such as Coinbase, Bybit, KuCoin, MEXC, and Gate.io, have yet to submit their applications.
According to Chainalysis, Turkey ranks as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, surpassing major markets such as Russia, Canada, Vietnam, Thailand, and Germany.
The lack of specific crypto regulations before now doesnt mean that Turkey’s crypto market is entirely unregulated. The Central Bank of the Republic of Turkey’s 2021 regulation bans the use of cryptocurrencies like Bitcoin for payments, as they are not recognized as legal tender. Additionally, Anti-Money Laundering regulations enforced by the Financial Crimes Investigation Board require exchanges to gather Know Your Customer data to combat illicit activities.
Notably, the Turkish lawmakers recently passed a specific cryptocurrency bill which imposes substantial penalties, including fines of up to $182,600 and prison sentences of up to five years for violations. The bill requires crypto exchanges in Turkey to obtain a licence from the Capital Markets Board, the country’s financial regulator. Unauthorised platforms offering trading services could face three to five years in prison.
The legislation also requires crypto providers to report measures such as seizures and legal actions and ensure that customer fund transfers are accessible and traceable by authorities.
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