Binance, OKX, and 45 Other Crypto Exchanges Applied for Licences in Turkey – Who Will Secure Their Spot in the World’s 4th Largest Crypto Market?

New Regulations for Crypto Serv冰 Providers in Turkey

Turkey’s Capital Markets Board (CMB) has recently clarified the regulatory landscape for crypto asset service providers following the introduction of significant legislative changes.

The “Law on Amendments to the Capital Markets Law,” enacted on 2 July 2024, marks a pivotal shift in how these entities are governed within the country.

This law has introduced a structured regulatory framework requiring crypto asset service providers to adhere to stringent guidelines, fundamentally altering the operational environment for these companies.

The CMB’s recent update revealed two key lists, highlighting the current status of crypto service providers.

这 first list includes 47 companies that have applied for licences under the new regulatory framework.

These entities, which range from prominent global exchanges like Bitfinex, Binance Turkey, Btcturk, and OKX, to smaller local players, are currently operating under the Capital Markets Law.

However, the CMB emphasised that inclusion in this list does not imply official authorisation. Companies are required to seek formal approval through additional processes mandated by secondary legislation.

The provisional nature of this list reflects the ongoing evaluations and investigations by the CMB, as they scrutinise the applications for compliance with the newly established regulations.

Liquidation Plans and Compliance Deadlines

The second list disclosed by the CMB features three companies that have declared their intention to liquidate.

These companies, unable or unwilling to comply with the new regulatory requirements, must cease operations and liquidate within a specified timeframe.

Under the new regulations, all crypto asset service providers already operating in Turkey must apply for an operating permit within one month or opt for liquidation within three months.

During this period, companies deciding to liquidate are prohibited from accepting new customers.

Noncompliance with these deadlines can result in severe legal consequences, including imprisonment and fines, as outlined in Articles 99/A and 109/A of the amended law.

Foreign-based crypto service providers targeting Turkish residents are also subject to the new regulations.

These providers must terminate their services to Turkish clients by 2 October 2024, or face legal repercussions.

Additionally, any ATMs and other devices facilitating crypto transactions must be decommissioned by this deadline, ensuring that all crypto activities within Turkey adhere to the new legal framework.

This regulatory shift reflects Turkey’s commitment to curbing unregulated crypto activities and ensuring that all participants in the market operate within the bounds of the law.

Turkey’s Regulatory Framework: Balancing Growth and Security

Despite the absence of comprehensive crypto legislation from Turkey’s parliament, the country has been proactive in implementing regulatory measures to govern the burgeoning crypto market.

The Central Bank of the Republic of Turkey, in 2021, established a regulation that prohibits the use of cryptocurrencies, such as Bitcoin, for payments, citing their non-recognition as legal tender.

Additionally, the Financial Crimes Investigation Board has implemented Anti-Money Laundering (AML) protocols, which mandate that crypto exchanges collect Know Your Customer (KYC) data to prevent illicit activities, including money laundering and terrorism financing.

These existing regulations, combined with the recent amendments to the Capital Markets Law, illustrate Turkey’s evolving approach to managing the risks associated with the rapidly growing crypto market.

The country’s regulatory framework is designed to balance the need for market growth with the imperative of investor protection and market stability.

The new regulations represent a significant step towards a more structured and secure crypto environment, positioning Turkey as a key player in the global crypto economy.

Turkey’s Prominence in the Global Crypto Economy

Turkey’s proactive stance on cryptocurrency regulation is underpinned by its significant role in the global crypto economy.

According to KuCoin’s May 2023 survey, over half of Turkey’s adults (52%) have invested in cryptocurrencies to shield their wealth from rapid inflation and currency devaluation.

This is a 12% rise from November 2021.

The Turkish Lira’s 50% depreciation ag人工智能nst the U.S. Dollar has driven this trend, with Bitcoin being the most popular investment (71%), followed by Ethereum (45%) and stablecoins (33%).

Subsequently, Turkey becomes the fourth-largest crypto market globally, with a trading volume of $170 billion last year, according to data from Chainalysis.

This positions Turkey ahead of major crypto markets such as Russia, Canada, Vietnam, Thailand, and Germany.

The country’s high adoption rate of cryptocurrencies has made it a focal point for both local and international crypto companies, many of which are now seeking to navigate the new regulatory landscape.

The surge in licence applications to the CMB highlights Turkey’s growing prominence in the cryptocurrency sector.

However, notable exchanges like Coinbase, Bybit, KuCoin, MEXC, and Gate.io have not yet initiated the licensing process, signalling potential challenges or hesitations in adapting to the new regulations.

As Turkey continues to refine its regulatory approach, the outcomes of these applications and the evolution of the country’s crypto market will be closely watched by industry stakeholders worldwide.

Binance’s Strategic Adjustments in Response to Turkish Regulations

In response to the newly enacted crypto regulations, Binance, one of the world’s largest cryptocurrency exchanges, has announced significant changes to its operations in Turkey early last month.

These adjustments include the gradual removal of Turkish language options from Binance.com services over the next three months and the complete cessation of direct marketing activities targeting Turkish users.

Translation:

How will Turkish users access Binance.com from Turkey?

According to the regulation, Binance.com and all foreign exchanges will still be accessible from Turkey. However, some changes will be made to some activities in Turkey in accordance with the laws. You can reach the important points below:

– Turkish language support on Binance.com will be gradually terminated within 3 months.

– In English and other supported languages, Turkish users will be able to use Binance.com without any changes.

– There will be no special advertisements or campaigns for Turkish users.

– Turkish users will be able to participate in global campaigns on their own initiative.

– Turkish customer service support will continue for Turkish users.

Despite these changes, Binance has assured its users that the platform will remain accessible from Turkey, with all user funds remaining secure.

The deposit and withdrawal functions will continue to be available, ensuring that Turkish users can still engage with the platform within the bounds of the new regulatory framework.

Binance’s proactive approach to regulatory compliance in Turkey reflects its broader strategy of aligning with local laws in the various jurisdictions where it operates.

By making these adjustments, Binance aims to maintain its presence in Turkey while adhering to the country’s evolving regulatory landscape.

What the New Regulations Mean for the Industry

As Turkey tightens its grip on the crypto sector, the country’s evolving regulations signal a broader shift towards more robust global crypto governance.

This push for compliance may well be a harbinger of stricter regulatory environments worldwide.

For crypto companies, adapting to these changes is not just about avoiding penalties but also about positioning themselves as leaders in a more transparent and secure market.

The challenge now lies in balancing innovation with compliance, as those who navigate this new landscape effectively will likely define the future of crypto regulation on a global scale.

Read the original article