The cryptocurrency market in Turkey is entering a new turn. The Capital Markets Board (CMB) is implementing regulations for crypto asset service providers. These regulations closely concern both domestic and foreign-based cryptocurrency exchanges.
CMB registers cryptocurrency service providers
In its statement on its official website, CMB obliged currently operating crypto asset service providers to apply to it by August 2, 2024. This is considered one of the first official steps to regulate the crypto market in Turkey. The CMB’s statement included the following statements:
Those who have been carrying out crypto asset service provider activities as of 02.07.2024 and have the will to continue to do so, must submit their declarations in accordance with the first paragraph of the Provisional Article 11 together with the information, documents and explanations in Annex/1 and Annex/2, to our Board by 02.08.2024. They must be submitted in writing.
This statement obliges cryptocurrency exchanges to continue their activities within the legal framework by being subject to CMB supervision. Cryptocurrency exchanges that do not apply to the CMB or do not meet the necessary conditions will not be able to continue their activities. CMB’s regulations aim to increase the reliability and transparency of the cryptocurrency market in Turkey. This will protect investors and is expected to bring stability to the market. However, it is also a matter of curiosity how the regulations will affect cryptocurrency exchanges.
Binance made changes to its services in Turkey
During the period when the regulations came into force, Binance, one of the leading crypto exchanges, announced that it had made some changes to its services in Turkey. As we reported as Kriptokoin.com, yesterday Binance announced that it will gradually remove the Turkish language option from its platform over the next 3 months and will stop all direct marketing activities towards Turkish users. Binance stated that these changes are related to the platform’s transparency and regulatory compliance. However, these decisions are interpreted as Binance starting to gradually withdraw from Turkey. It is thought that Turkish users’ interaction with the platform will decrease.
Binance is also experiencing problems on a global scale
Binance is actually facing some challenges globally, regardless of the developments in our country. Like Coinbase, Binance has been lobbying for a solid legal framework to regulate the Bitcoin and altcoin market in the United States. However, Binance was one of the companies negatively affected by the sanctions of the US Securities and Exchange Commission (SEC) against cryptocurrency exchanges in 2023. Binance was accused of failing to operate as a registered broker, commingling company and customer assets, misusing customer funds, and manipulating its own cryptocurrencies in the market.
Its founder, Changpeng “CZ” Zhao, who resigned as CEO last year, now faces a four-month prison sentence. Zhao, who was accused of violating Anti-Money Laundering (AML) rules, admitted this crime. Binance is also having trouble with authorities in Nigeria and its services are currently restricted in that country.
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