Turkey announces list of 47 firms applying for crypto licenses amid new regulations

Turkey in a publication announced a surge in cryptocurrency license applications from companies looking to operate in the country.

This was announced in a publication by the Capital Markets Board (CMB) of Turkey that 47 cryptocurrency companies, including popular well-known exchanges Binance TR, Bitfinex, and OKX TR, have applied for licenses under new regulations.

The influx of applications coincides with the July 2 implementation of the "Law on Amendments to the Capital Markets Law." The aim of this law is to give Turkish crypto asset service providers a regulatory framework. The CMB made it clear in its statement that three companies have filed for liquidation, and those whose applications contained inaccurate or insufficient information are still under review.

In its announcement, the CMB made clear that being mentioned on the "List of Those in Operation" does not imply official approval. After secondary legislation is passed, companies are still required to request formal Board approval. When companies correct errors or the CMB wraps up its investigation, the list will be updated.

The new bill requires crypto platforms to apply for authorization from the CMB in order to conduct lawful business within the country. Unauthorized providers risk heavy fines from the court as well as three to five years in prison. Members of a crypto service provider's board of directors or other officials who embezzle will be sentenced to eight to fourteen years in prison as well as heavy fines.

In addition, cryptocurrency service providers have to ensure that law enforcement can access and trace customer funds transfers, as well as implement and report measures like seizures and additional legal enforcement actions. The post further said that within three months of the law's passage, cryptocurrency ATMs—which facilitate exchanges between cash and cryptocurrency assets—must be shut down. Authorities will close ATMs that do not comply. Independent organizations will be chosen by the CMB to audit the financial and information systems of cryptocurrency service providers.

Turkey is the fourth-largest cryptocurrency market globally, with an estimated $170 billion in trading volume, according to data from Chainalysis. Turkey is currently ahead of other major cryptocurrency markets, including those in Thailand, Vietnam, Germany, Russia, and Canada.

Across the top cryptocurrency exchanges in the country, $34.91 billion worth of cryptocurrency was traded in Turkey in the first half of 2023. The future appears bright with high citizen adoption and government initiatives utilizing blockchain technology. There's no doubt that Turkey will have a more developed and long-lasting cryptocurrency ecosystem as regulations take shape.

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