Coinbase Pulls Out of Plans to Enter Turkey’s Crypto Market

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

December 1, 2024

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Crypto exchange Coinbase has withdrawn its pre-application to enter Turkey’s crypto market.

On Nov. 29, Turkey’s financial regulator updated its list of companies requesting liquidation, confirming Coinbase withdrew its application.

QNB Digital Assets, a division of Turkey’s QNB bank, joined Coinbase in filing for liquidation, marking its closure alongside Bitget, Finceptor, Koinim, Stanfex, and XYZ Technology.

Meanwhile, Bitfinex, Bitbns, Bitlo, OKX, and Rain Software are still seeking opportunities in Turkey by applying to provide custody services. These changes have raised the number of companies filing for liquidation in Turkey to 14, while 77 applicants remain in process.

Earlier this year, Coinbase joined the race to operate in Turkey’s growing crypto market.

However, the reasons for withdrawing its bid remain unclear. A Coinbase spokesperson said that the exchange “continually assesses potential markets for expansion.”

“Our strategy remains adaptive to evolving market conditions, regulatory landscapes, and our internal priorities, ensuring we align our efforts with both external developments and Coinbase’s overarching mission,” they added.

Binance Ends Turkey Referral Program as Crypto Regulations Tighten

In October, rival exchange Binance announced it would end its retail referral program in Turkey to comply with local regulations.

Turkey’s crypto market is expanding but comes with challenges like high volatility from the lira’s depreciation. Foreign firms may struggle with unpredictable profitability, unexpected regulations or new taxes that affect their business models.

Turkey has tightened its crypto regulations this year. Early this year, the government introduced comprehensive legislation to increase oversight of digital asset exchanges.

Turkey’s Finance Minister Confirmed No Crypto Profit Tax, Proposes Limited Fee

In June, Turkey’s Finance Minister Mehmet Simsek denied reports about taxing stock and crypto profits. However, he hinted at possibly introducing a “very limited” transaction fee.

“We have not currently included taxation on profits for crypto assets and the stock market in our agenda. There may be a very limited fee or taxation on a transaction-based basis,” Mehmet Simsek said.