The U.S.-based cryptocurrency exchange Coinbase has officially pulled its pre-application to operate in Turkey, an unexpected turn of events for the global crypto community. According to Türkiye Today, this is evidenced by the updated liquidation list of the Turkish Capital Markets Board (CMB) dated November 29. Coinbase had filed the application under Coinbase Turkey Yazılım Teknolojileri AŞ just four months ago, which makes the sudden turnaround even more surprising.
The reasons for the sudden pullback are not publicly known. In response to inquiries by Protos, a spokesperson said only, “Coinbase remains adaptable to ever-evolving market conditions, shifting regulatory landscapes, and to our internal priorities.” In view of these words, speculation exists both that regulatory complications were overwhelming and that changing corporate strategies influenced such a decision.
Other Crypto Platforms Also Reconsider
Coinbase’s move is not an isolated incident. The updated CMB liquidation list includes other crypto platforms such as Bitget, Bengaluru-based Mudrix, and Turkish exchange Koinim. Such a synchronized exodus by these companies may point toward a problem in the regulatory or market environment of Turkey, thus prompting the wider retreat among the operators of cryptocurrency platforms.
This trend brings into question the viability of operating in the crypto market of Turkey, especially for international players in largely uncharted regulatory waters. The exits come despite Turkey’s significant role in the global crypto ecosystem, underlining an interesting dichotomy between market potential and operational hurdles.
Turkey’s Growing Crypto Market
Turkey is an active player in the global cryptocurrency arena. In a recent report, blockchain analytics firm Chainalysis ranked Turkey as the largest crypto market in the Middle East and North Africa region, seventh globally. From July 2023 to June 2024, a total of $136.8 billion worth of cryptocurrency transactions were recorded in Turkey, emphasizing the country’s vibrant crypto adoption and potential opportunities for exchanges.
Global Trends in Crypto Regulation
Coinbase’s retreat also reflects a broader trend of crypto exchanges grappling with varying global regulations. In the European Union, for example, compliance with the Markets in Crypto-Assets legislation has required companies to adapt or reconsider their strategies. Some exchanges have delisted products to meet stringent compliance requirements, while others have exited specific markets altogether.
The dynamics of Coinbase’s decision underscore a fine balancing act in tapping lucrative markets while considering the changing regulatory landscape. As Turkey continued to rise as a crypto activity center, such strategic retreats are more than likely to shape its market’s future.
