- Coinbase and KuCoin applied for a license to operate in Turkey
- Crypto adoption in Turkey saw considerable growth with over $1.7 billion in revenue
As an asset class, cryptocurrencies have permeated all demographics and jurisdictions. Once a niche, with every passing day, cryptos are more and more mainstream.
Owing to the same, it is not unexpected to assume that crypto-entities would remain limited to their local territories. In fact, the recent examples of Coinbase and KuCoin prove otherwise.
Coinbase and KuCoin make a move
Coinbase and KuCoin, two of the world’s biggest crypto exchanges, have applied for a license to operate in Turkey. According to a report from the Turkish Capital Markets Board – CMB – 29 new exchanges have applied for a license to operate in the country since 9 August. With the new entrants, the total number of applicants is 76, compared to 47 previously.
These applications follow the introduction of a new law in Turkey last month – “Law on Amendments to the Capital Markets Law.” The law introduces new and tighter rules on the regulation of crypto asset service providers, leading all exchanges to seek authorization for operation.
Crypto adoption in Turkey
Crypto use and adoption have spiked in Turkey over the last decade. In fact, in 2024, user penetration in the country is projected to hit figures of 30.24% and increase further in 2025.
The hike in the aforementioned figures is arising from a greater number of local crypto exchanges and authorities’ efforts to regulate the crypto-markets.
Source:Statista
The uptick in crypto usage means the average revenue per user in Turkey will reach $66.1 by 2024, while the revenue will hit $1.7 billion.
By 2025, the country is expected to see exponential growth with more than 26 million users.
Source: Statista Markets
Now, although the revenue estimates for 2025 project a decline despite a hike in user base, the entry of major exchanges like Coinbase and KuCoin might change these expectations.
Source: Mercuryo
Compared to 2023, the Turkish crypto market has grown exponentially this year. According to Mercuryo, for instance, crypto trading volume in 2023 was $34.9 billion. Turkey remains a leader compared to other countries in the region, beating countries like Indonesia by $3.6 billion in trading volume.
Equally, the increased adoption has seen a drastic change in user demographics. Male users dominate the country, while adults over the age of 30 constitute over 52% of the crypto users and investors.
What it means for the crypto market
The entry of major crypto exchanges in the Turkish market will have a massive impact. The firms can potentially raise user base, thus driving more addresses and increasing trading volume.
Therefore, with legally compliant crypto exchanges, the Turkish crypto market is set to spike in revenue, trading volume and active addresses. Essentially, this will help shift the estimates for a decline in revenue in 2024 by bringing in more users.
