Top digital currency trading platforms like Coinbase Global Inc., KuCoin, and Gate IO have joined the quest for licensing in Turkey.
With some of these businesses facing regulatory challenges in the United States, they now appear poised to move their businesses to more favorable terrain. The choice of Turkey for these exchanges hinges on clearer regulation in the country.
Will Turkey Emerge as a Hub for Crypto Operations?
Coinbase, KuCoin, and Gate are just three of the crypto exchanges pushing for acceptance in Turkey. The trio have filed for licensing and declared that they will conduct their businesses in accordance with the Turkish Temporary Article 11 of the Capital Markets Law No. 6362 (Law).
In a publication on the Capital Markets Board of Turkey’s website, these three crypto exchanges were among a “temporary list” of 76 other organizations seeking access to operate in Turkey. If granted, these entities will have to comply with the Turkish regulatory body’s laws, which they hope will favor their business operations compared to the challenges confronting them in the U.S.
Market experts say the US strain has prompted some exchanges to move to other countries, particularly those with more crypto-friendly dispositions and regulatory frameworks. In recent times, there has been an increasing expansion of crypto exchanges to other countries and regions not just to enjoy fairer laws but also to claim market dominance.
Binance, which was suspended from the Indian market earlier this year, has pushed for regulatory compliance with the Indian authorities to regain its market share in the Asian nation.
Competitiveness has also seen countries open up to digital assets and blaze the trail in terms of granting regulatory approvals for trade in crypto. Hong Kong, for instance, soared high in its status as a global financial hub for crypto assets when it gave the green light for spot Bitcoin and Ethereum ETFs. The approval of the spot Ethereum ETF came well before the U.S. SEC approved it.
The Coinbase and Uniswap Legal Strain in US
Coinbase, for instance, has been in a legal tussle with the U.S. Securities and Exchange Commission (SEC) since last year. It is in search of documents to understand the agency’s operations rules of the road guiding crypto. As per Coinbase’s argument, the U.S SEC has remained largely inconsistent and demonstrated a lack of coherence in its supervisory role over the crypto industry.
Notably, in 2023, the U.S. SEC also sued Coinbase for operating as an unregistered securities broker since 2019. The exchange is contending this allegation in court to date. The legal team of the exchange hopes to push back on what some in the ecosystem consider the “high-handedness” of the regulatory commission.
Aside from Coinbase, another key player in Decentralized finance (DeFi), Uniswap also recently received a Wells Notice from the SEC. The platform has challenged the SEC to contest its categorization of UNI and other supported assets as securities.
With these exchanges’ push for licensing in Turkey, they can plot a more ambitious growth trend.
