- Coinbase and KuCoin have applied for a license to operate in Turkey
- Cryptocurrency adoption in Turkey saw significant growth with sales exceeding $1.7 billion
As an asset class, cryptocurrencies have penetrated all demographics and jurisdictions. Once a niche, cryptos are becoming more mainstream by the day.
Due to the same, it is not unexpected to assume that crypto entities would be limited to their local territory. In fact, the recent examples of Coinbase and KuCoin prove otherwise.
Coinbase and KuCoin are making a move
Coinbase and KuCoin, two of the world’s largest crypto exchanges, have applied for a license to operate in Turkey. According to a report from the Turkish Capital Markets Council – CMB – Since August 9, 29 new stock exchanges have applied for a license to operate in the country. The new entrants bring the total number of registrations to 76, compared to 47 previously.
These applications follow the introduction of a new law in Turkey last month – “Law on the Amendment of the Capital Markets Law.” The law introduces new and stricter rules for the regulation of crypto asset service providers, requiring all exchanges to seek permission for their activities.
Crypto Adoption in Turkey
Cryptocurrency use and adoption have increased dramatically in Turkey over the past decade. By 2024, user penetration in the country is expected to reach 30.24% and rise further in 2025.
The increase in the aforementioned figures stems from a greater number of local crypto exchanges and authorities’ efforts to regulate crypto markets.
Source: Statista
The increase in crypto usage means that the average revenue per user in Turkey will reach $66.1 by 2024, while revenue will reach $1.7 billion.
By 2025, the country is expected to experience exponential growth with more than 26 million users.
Source: Statista Markets
While revenue estimates for 2025 predict a decline despite an increase in the user base, the arrival of major exchanges like Coinbase and KuCoin could change these expectations.
Source: Mercurio
Compared to 2023, the Turkish crypto market has grown exponentially this year. For example, according to Mercuryo, cryptocurrency trading volume reached $34.9 billion in 2023. Turkey remains a leader compared to other countries in the region, beating countries such as Indonesia by $3.6 billion in trade volume.
Likewise, increased adoption has led to a drastic change in the user demographic. Male users dominate the country, while adults over the age of 30 make up over 52% of crypto users and investors.
What it means for the crypto market
The entry of major crypto exchanges into the Turkish market will have a huge impact. The companies may be able to grow the user base, generating more addresses and increasing trading volume.
Therefore, with legally compliant crypto exchanges, the Turkish crypto market will reach a peak in revenue, trading volume and active addresses. Essentially, this will help shift estimates for a revenue decline in 2024 by attracting more users.