Key Takeaways
- Coinbase joined 14 other companies that have filed for liquidation in Turkey.
- Binance and KuCoin, for instance, removed Turkish language options and paused marketing to Turkish users earlier this year.
Leading crypto exchange Coinbase, has announced its withdrawal from the Turkish market and the liquidation of its local operations. The decision, revealed in an update from Turkey’s Capital Markets Board on November 29, comes just three months after the company submitted a pre-application to operate in the country.
The Capital Markets Board’s updated records indicate that Coinbase requested the withdrawal of its application, joining 14 other companies that have filed for liquidation in Turkey. Meanwhile, 77 firms, including major players like Binance, KuCoin, and OKX, remain in the application process.
Turkey has been tightening regulations around digital assets, aiming to increase oversight and improve investor protections. In recent months, other global crypto platforms have also adjusted their operations to align with these regulations. Binance and KuCoin, for instance, removed Turkish language options and paused marketing to Turkish users earlier this year.
Coinbase has not commented on the reasons behind its exit, but analysts suggest regulatory challenges and shifting market conditions could have played a role. Under the new law in Turkey, all crypto exchanges operating in the country must obtain a license to ensure they meet specific criteria.
The Turkish Capital Markets Board (SPK) has set strict establishment requirements, including minimum capital thresholds and technical infrastructure standards. The departure coincides with broader changes in Turkey’s crypto market, as several other companies, including QNB Digital Assets, a division of Qatar National Bank, have also filed for liquidation. Other firms exiting the market include Finceptor, Koinim, Stanfex, and XYZ Teknoloji.
At the same time, institutional interest in digital assets in Turkey appears to be growing. Yapı Kredi Bank, one of Turkey’s major financial institutions, has applied to become a crypto custodian. The bank joins entities like Takasbank and Eliptik Digital Custody Management, a subsidiary of BtcTurk, in seeking to offer custody services for digital assets.
Coinbase’s decision to withdraw from Turkey follows other strategic adjustments in its global operations. In Europe, the company recently discontinued USDC rewards for users in the European Economic Area, citing compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation. MiCA, which imposes stricter requirements on stablecoin issuers, has been a significant factor in shaping Coinbase’s offerings in the region.
Additionally, Coinbase plans to discontinue trading Wrapped Bitcoin (WBTC) by the end of 2024, following an internal compliance review. While its cbBTC token continues to perform well in decentralized finance, the decision to delist WBTC has drawn criticism from some users.