Coinbase, one of the world’s leading cryptocurrency exchanges, has decided to withdraw from Turkey’s crypto market. The company has filed for the liquidation of its local operations after withdrawing its application to operate in the country. This decision comes just three months after Coinbase had initially submitted a pre-application to Turkey’s financial regulator, signaling a significant shift in its strategy in the region.
The Capital Markets Board in Turkey recently updated its liquidation list, which now includes Coinbase alongside 14 other companies that have also filed for liquidation. Meanwhile, 77 firms remain in the application process, including well-known platforms such as Binance, KuCoin, and OKX. Regulatory challenges appear to be a key factor influencing these developments. Earlier this year, Binance and KuCoin adjusted their operations in Turkey, removing Turkish language options from their platforms and halting localized marketing efforts. Binance cited compliance with Turkish regulations as the reason for these changes.
Coinbase’s move in Turkey is part of a broader pattern of adapting to evolving regulatory landscapes in different regions. In December, the company discontinued yield offerings on USDC for European users, attributing the decision to compliance with the European Union’s Markets in Crypto-Assets regulation, which imposes stricter guidelines on stablecoins. Coinbase also announced plans to stop trading Wrapped Bitcoin (WBTC) by December 19, 2024, following an internal compliance review. While Coinbase’s cbBTC token has gained traction in decentralized finance, the decision to delist WBTC has drawn criticism from the token’s team and users who view it as a competitive strategy.
While these international challenges unfold, Coinbase remains focused on shaping crypto policies in the United States. The exchange’s CEO, Brian Armstrong, has reportedly been advocating for more crypto-friendly leadership at the Securities and Exchange Commission. Armstrong proposed Hester Peirce as a replacement for outgoing SEC Chair Gary Gensler, who is set to step down in January. This move reflects Coinbase’s broader strategy to create a regulatory environment that supports the growth of the cryptocurrency industry in its home market.
Despite regulatory challenges in certain regions, Coinbase has experienced positive momentum in other areas. In November, the exchange’s global app ranking surged to ninth place, coinciding with a Bitcoin price rally that sparked renewed interest in cryptocurrency among retail investors. This increase in app downloads suggests growing enthusiasm for digital assets, which could drive higher trading volumes and contribute to broader market adoption.
Coinbase’s decision to exit Turkey highlights its focus on prioritizing markets where regulatory frameworks are more predictable and conducive to growth. By redirecting resources to regions with clearer regulations, the company aims to strengthen its position in the global cryptocurrency ecosystem. While the cryptocurrency industry continues to navigate evolving regulatory landscapes, Coinbase’s adaptability and strategic focus ensure it remains a central player in the market.
