US-based cryptocurrency exchange Coinbase has withdrawn its pre-application to operate in Turkey, according to a report by Turkiye Today.
The Capital Markets Board of Türkiye updated its list of companies requesting liquidation on November 29.
The update revealed that Coinbase, which had initially filed its pre-application in August, decided to withdraw and requested liquidation of its pending application.
Coinbase’s move comes amid a series of similar withdrawals by other companies in the digital asset sector. QNB’s digital asset division, QNB Digital Assets, has also filed for liquidation, signaling the closure of its operations in Turkey.
Other firms, including Finceptor, Koinim, Stanfex, and XYZ Teknoloji, have joined the list of companies seeking to exit the Turkish market.
Meanwhile, some financial institutions are taking steps to enter the cryptocurrency space in Turkey. Yapi Kredi Bank has submitted documents to the Capital Markets Board as a cryptocurrency custodian applicant.
The bank joins Takasbank and Eliptik Digital Custody Management—a subsidiary of BtcTurk—in applying to provide custody services for digital assets.
These developments highlight a shifting landscape in Turkey’s cryptocurrency market. With the recent updates, the total number of companies seeking liquidation has risen to 14, while the number of applicants aiming to operate in the sector stands at 77.
Turkey has been tightening regulations around cryptocurrencies, aiming to increase oversight and protect investors from potential risks associated with digital asset trading.
The regulatory environment may have influenced the decisions of companies like Coinbase and QNB Digital Assets to reconsider their entry into the Turkish market.
Coinbase, one of the world’s largest cryptocurrency exchanges, has been expanding its global footprint but appears to be reevaluating its strategy in Turkey.
The reasons for its withdrawal have not been officially disclosed. Industry analysts speculate that regulatory challenges and market conditions could be factors influencing such decisions.
The entrance of established financial institutions like Yapi Kredi Bank into the cryptocurrency custody space suggests a growing institutional interest in digital assets within Turkey.
Custody services are essential for the security and management of cryptocurrencies, and the involvement of reputable banks could enhance trust in the market.
Representatives from Coinbase and the Capital Markets Board of Türkiye were not immediately available for comment.
The Turkish cryptocurrency market has seen significant growth in recent years, with a surge in trading volumes and investor interest. However, the market has also faced challenges, including regulatory crackdowns and concerns over security following high-profile exchange failures.