Turkey’s Crypto Market Faces Exits and Closures

Turkey’s crypto market closures and exits have become a growing trend, with 14 companies, including QNB Digital Assets and Coinbase, filing for liquidation, according to the country’s financial regulator. This shift comes amid a changing regulatory environment, prompting many firms to reassess their regional operations.

Among the notable companies seeking closure is QNB Digital Assets, the cryptocurrency division of Qatar National Bank. Other firms opting for liquidation include Bitget, Finceptor, Koinim, Stanfex, and XYZ Technology. These exits mark a challenging period for the Turkish crypto market, which has seen fluctuating interest levels from international players. 

Coinbase, one of the world’s largest crypto exchanges, has also withdrawn its pre-application to enter Turkey’s market. This decision, announced on November 29, comes just months after the company expressed interest in tapping into Turkey’s growing crypto sector. 

Turkey’s Crypto Market Faces Exits and Closures

The reasons behind Coinbase’s withdrawal remain unclear, as the company has not issued an official statement. However, its departure is seen as a sign of the evolving regulatory landscape in Turkey, where the crypto environment is under increasing scrutiny. Separately, Coinbase announced that it will discontinue its USDC rewards program for users in the European Economic Area (EEA), effective December 1. 

This decision comes in response to the new Markets in Crypto-Assets (MiCA) regulation, which took effect in June 2023. MiCA imposes strict compliance requirements on e-money tokens like USDC, including licensing as credit or electronic money institutions and prohibiting interest-bearing products like rewards. Users affected by this change will receive their final payouts by mid-December. 

Despite these setbacks, some crypto companies remain committed to the Turkish market. Firms like Bitfinex, Bitbns, OKX, and Rain Software continue pursuing licenses for custody services, reflecting ongoing opportunities in the region. 77 crypto companies still have active applications in Turkey, while the liquidation filings have reached 14. The shifting regulatory environment, including the introduction of MiCA in Europe, continues to reshape the global crypto landscape.

Also, Check out Stock Brokers Reviews for the latest enhancements and take your trading to the next level.