Coinbase Halts Turkish Expansion During Market Uncertainty

Exchange of cryptocurrency After other trading platforms made similar actions, Coinbase abruptly withdrew its bid to enter the Turkish market. Four months after the U.S.-based corporation started its pre-application to operate in the area, this decision was made.

After the Turkish Capital Markets Board (CMB) revised its list of companies seeking liquidation on November 29, Türkiye Today was the first to publish Coinbase’s withdrawal from Turkey. The exchange has since changed its mind about using Coinbase Turkey Yazılım Teknolojileri AŞ to file its application.

When asked about the decision, a Coinbase spokesperson declined to elaborate, stating only that the company “remains adaptive to evolving market conditions, regulatory landscapes, and our internal priorities.”

Broader Trends in Crypto Regulation

Coinbase isn’t alone in reconsidering its operations in Turkey. Other platforms, including Bitget, Mudrix, and Turkish exchange Koinim, have also sought liquidation of their Turkish entities. Regulatory challenges and market shifts appear to be key factors influencing these decisions.

Globally, crypto exchanges face increasing regulatory scrutiny. For instance, some have had to delist products to comply with new legislation, such as the European Union’s Markets in Crypto-Assets (MiCA) framework.

Turkey is nevertheless a major participant in the cryptocurrency ecosystem in spite of these obstacles. Turkey is the biggest cryptocurrency market in the Middle East and North Africa area and ranks seventh internationally, according to blockchain analytics company Chainalysis. The nation’s cryptocurrency transactions totaled $136.8 billion between July 2023 and June 2024.

The difficulties of joining regulated markets are highlighted by Coinbase’s withdrawal from Turkey. Businesses like Coinbase must strike a balance between strategic priorities, compliance requirements, and development prospects as the cryptocurrency sector develops.

The action shows that international exchanges are being careful as they negotiate quickly shifting laws and market dynamics in strategic areas.