47 Crypto Providers Request Licenses In Turkey Under New Law

The Turkish Capital Markets Board reported that 47 cryptocurrency businesses have requested licenses following new rules put in place earlier this year. Turkey is now seeing an increase in cryptocurrency companies looking to establish themselves in the country.

Renowned companies like OKX TR, Binance TR, and Bitfinex have applied to receive licenses in the country. These famous cryptocurrency exchanges are trying to meet the new rules and start their business in Turkey. Meanwhile, big platforms such as Coinbase, Bybit, KuCoin, MEXC, and Gate.io haven’t started applying for licenses yet.

Turkish New Law Leads To Increased Enquiry Of Licenses In The Region

The increase in applications comes after Turkey implemented a new law called “Law on Amendments to the Capital Markets Law.” The law started on 2 July this year and is meant to create rules for cryptocurrency companies working in Turkey.

Recently, the Capital Markets Board announced that three companies have said they are shutting down. They are closing their businesses and all their operations. Furthermore, the CMB is reviewing other companies that have asked for licenses. They are being examined because they didn’t give enough or complete information in their applications.

The regulator explained that being on the “List of Those in Operation” doesn’t mean a company is officially authorized. Companies must get official consent from the board once the new laws are active.

According to the update, Turkey is waiting for the parliament to approve specific cryptocurrency rules. However, the country already has two main laws about these popular digital tokens. The first one was made by the Central Bank of Turkey three years ago. It stops people from transacting with cryptocurrencies like Bitcoin because they are not considered legal money.

The second regulation is watched over by the Financial Crimes Investigation Board. It is about preventing money laundering. It makes exchanges collect customer details to stop illegal actions like money laundering and supporting terrorism.

The Turkish Government Aims To Regulate Cryptocurrencies

For two years, the government of Turkey has been creating laws to manage the cryptocurrency sector. It increased its work after some trading platforms went bankrupt, which caused many people to lose access to their funds.

According to the new law, cryptocurrency companies must get licenses from the Capital Markets Board (SPK) in Turkey. The law will manage cryptocurrency service providers, cryptocurrency platforms, and the handling of crypto assets. This includes buying, selling, and transferring them to people in Turkey.

The law requires cryptocurrency service providers to protect their information systems based on certain technological rules given by the authorities. It’s important to mention that Turkey plays a big role in the global cryptocurrency scene.

Turkey is the fourth biggest cryptocurrency market in the world, with a trading volume of about $170 billion. This is more than well-known markets like Canada, Russia, Germany, Vietnam, and Thailand.