Crypto exchanges are digital platforms where cryptocurrencies are bought and sold. They enable exchange transactions of cryptocurrencies such as Bitcoin and Ethereum. The importance of crypto exchanges in Turkey is increasing day by day.
Although crypto exchanges are not clearly defined in the Turkish legal system, CMB and BRSA make regulations regarding these exchanges from time to time. In order to provide an environment of trust for users, some rules such as identity verification have been introduced. With a regulation made in 2021, it was decided that crypto exchanges operating in Turkey should be affiliated with the Central Bank of the Republic of Turkey.
Although the legal framework for crypto exchanges in Turkey is not yet clear in general, it is anticipated that more comprehensive regulations will come as we are aware of the importance of these exchanges in the financial system.
Türkiye Technology Ecosystem
Many new trends have recently emerged in the technology sector in Turkey. Many startup companies are being established, especially in areas such as artificial intelligence, internet of things, fintech and gaming. Investments in technology and incentives given within the scope of 2023 targets enable new companies to sprout in this field.
Serious investments have been made in Turkish technology companies in recent years. Venture capital investments, especially in early stage technology companies, have reached quite high figures. More than $1.4 billion was invested in 144 technology startups in 2021. Technology investments are increasing in cities such as Izmir, Bursa and Konya, especially in Istanbul and Ankara.
Young population, cheap labor, government incentives and growing domestic market make Turkey an attractive country for technology investments. It is expected that investments in Turkish technology companies will continue to increase in the coming years and Turkish companies will become among the global technology giants.
Participation Banking and Blockchain in Turkey
Participation banking has been developing rapidly in Turkey in recent years. The asset size and number of customers of participation banks, which have an interest-free banking model, are gradually increasing. Within the scope of the 2023 target, it is aimed to increase the sector’s share in total banking to 15 percent. For this purpose, many incentives and facilities are provided to participation banks.
On the other hand, Türkiye is rapidly advancing in the adoption of cryptocurrency and blockchain technology. Turkey’s young population that closely follows technology in this field makes the country a suitable candidate for the use of cryptocurrency. Many businesses have started accepting Bitcoin and other cryptocurrencies as payment methods. At the same time, Turkish companies and entrepreneurs are very aggressive in developing new blockchain-based products. The path to more widespread use of these technologies across the country seems clear in the coming years.
Crypto Exchange Market Overview
Turkey has a large audience interested in cryptocurrencies and blockchain technology. This causes crypto exchanges in the country to grow rapidly. Turkey’s leading crypto exchanges include platforms such as Paribu, BtcTurk, Bitci. These exchanges, whose number of customers and transaction volumes are rapidly increasing, contribute greatly to the Turkish economy.
The business model of crypto exchanges is to offer users the opportunity to buy and sell cryptocurrencies and collect small commissions per transaction. The importance of crypto exchanges is also increasing, as crypto investments have become an attractive option for countries such as Turkey that experience high inflation and exchange rate problems. Stock exchanges reflect the value added to the economy through the commissions they collect and the increase in cryptocurrency reserves.
Another popular crypto exchange platform that is not of Turkish origin but has Turkish language support is Changelly. Changelly provides fast and advantageous exchange between different blockchain-based tokens. crypto exchange Changelly, one of the leading companies in the market, is gradually increasing its market share.
Regulatory and Legal Framework
There is no comprehensive regulation regarding cryptocurrencies and exchanges in Turkey yet. However, CMB, BRSA and CBRT make some regulations in this field from time to time. In 2021, rules such as user authentication were introduced for crypto exchanges that were placed under the supervision of the central bank.
Although current regulations cause some restrictions on the operations of crypto exchanges in Turkey, they are seen as a positive step for the sustainability of the activities of these exchanges. It is also stated that these regulatory steps taken to protect investor rights and personal data increase the legitimacy of the cryptocurrency ecosystem.
It is expected that a more comprehensive cryptocurrency law will be enacted in the coming period. It is predicted that such a regulation will make crypto exchanges stronger and accelerate the growth of the sector.
Importance
Borsa Istanbul (BIST), as Turkey’s largest stock exchange, also makes significant contributions to the development of the cryptocurrency market. In 2021, Crypto Assets Market was established within BIST. With this market, investment products based on crypto money and assets can be bought and sold.
BIST introduced a number of innovations for crypto assets. While the Exchange Traded Fund Investing in Crypto Assets offers indirect investment opportunities in crypto currencies, new products such as futures contracts based on crypto indices and escrow services for crypto assets have also been launched with this market.
Creating a reliable and transparent environment within Borsa Istanbul where crypto assets can be bought and sold is of great importance for the crypto ecosystem in Turkey. BIST will play a key role in the growth of the crypto market and the expansion of the investor base. It is aimed to diversify and increase the new crypto products and services offered by BIST in the coming period.