Crypto Market in Turkey: Insights and Opportunities

The relationship between Turkey and cryptocurrency is an interesting combination of enthusiasm and caution. While the country shows a strong adoption rate among its citizens, regulations are still under development. This article highlights the present status of the Turkish crypto market, including governmental initiatives, regulatory hurdles, and major industry players.

Government Initiatives

There is potential to be seen in the use of blockchain by the government of Turkey. In this regard, a blockchain-based digital identity management system was rolled out in January 2023 to make it safe and smooth to access public online services. He testifies very strongly to the fact that the government judges there is great potential in blockchain applications to make public service delivery better.

Regulatory Landscape: Striking a Balance between Innovation and Risk Management

The Turkish authorities are working to finalize market regulations on cryptocurrency. This is timely and expected in January 2024, and it will accomplish the following:

• Definition of the key terminologies of cryptocurrency.

• Getting trading platforms licensed.

• Adherence to the FATF standards in AML and CFT.

With well-elaborated regulations, this step will end up benefiting very much the investor and the entire sector by providing a legal base and doing away with its underlying risks.

Old Regulations:

April 2021 regulations; Prohibition of the use of crypto assets for payment purposes and related services.

Crypto profits are currently tax-free for individuals but are subject to a 22% corporate tax.

Regulatory Bodies and Industry Associations

The following regulatory bodies are powerful in shaping the Turkish crypto environment:

• Capital Markets Board of Turkey (CMB)

• Information and Communication Technologies Authority (ICTA)

• Banking Regulation and Supervision Agency (BRSA)

• Turkish Competition Board (TCB)

The industry associations also help in ensuring a well-developed environment for cryptocurrencies in the country:

• Blockchain Turkey Platform (BCTR)

• Crypto Industry Development, Monitoring, and Reporting Association

• CFA Society Istanbul

These bodies work in compliance to promote responsible financial technologies and adherence to rules.

Major Investments Indicate Rising Confidence

International players seem to be attracted to the boom in the crypto market in Turkey.

February 2024: OKX has introduced a Turkish platform, OKX TR, with trading pairs with the Turkish Lira, TRY, and fiat onramps with local customer support.

December 2023: Akbank has invested in the local crypto company Stablex; Garanti BBVA has rolled out a crypto wallet app, conventional finance does show interest after all.

2020: Huobi joins BCTR, a marker of international cooperation and experience within one of the largest companies in blockchain asset service. These investments illustrate the growing confidence in these potential crypto markets.

Major Players in the Turkish Crypto Market

Several local companies are shaping the industry and initiating launches:
Bllng.com, KryptEd, Finartz, Nerf IT, Solidus Investments, Palamut, BiLira, TRDEFI, Auvitas, and Resardis

Market Size

The cryptocurrency market in Turkey is expected to reach US$40 million in 2028 from US$23 million in 2023 at a CAGR of 12.65%. Turkey's crypto market presents a unique case study. With high citizen adoption and government initiatives leveraging blockchain technology, the future looks promising. As regulations take shape, the path is clear for a more mature and sustainable crypto ecosystem in Turkey.