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Turkish license applications<\/p>\n<\/li>\n
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New Thailand PM<\/p>\n<\/li>\n
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MiCA entries and exits<\/p>\n<\/li>\n
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Coinbase x SEC drama<\/p>\n<\/li>\n
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Harris vs Trump and crypto\u2019s impact on the US election<\/p>\n<\/li>\n<\/ul>\n
![\"CryptoCubed](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2024\/08\/LiraUS-Dollar-2.jpg\")
<\/p>\n76 Companies Pursue Turkish Licenses Under New Regulatory Framework<\/h2>\n
Over the last 3 years, the population of Turkey that holds cryptocurrencies has risen from 16% to 40%, placing Turkey near the top of the list for both growth and adoption rates. The country\u2019s trading volume is now ranked 4th, trading an estimated $170 billion in 2023.<\/p>\n
In response to the sector\u2019s growth, Turkey’s Capital Markets Board (CMB) has taken significant steps to fine-tune its crypto regulation and infrastructure. 76 crypto service providers are now seeking licenses <\/a>under the newly established \u201cLaw on Amendments to the Capital Markets Law.\u201d<\/p>\n
This law, signed into effect by President Recep Tayyip Erdo\u011fan in July 2024, marks a critical turning point in Turkey’s approach to digital assets. Among the companies on the CMB’s list are industry giants like Binance, OKX, Coinbase, and KuCoin, each vying for a foothold in what is rapidly becoming a key crypto hub.<\/p>\n
Turkey’s accelerated adoption of cryptocurrencies can be inextricably linked to its economic context. With the Turkish lira having lost more than 95% of its value against the US dollar over the past 16 years,<\/a> digital assets offer an attractive alternative for both investors and ordinary citizens seeking to protect their wealth.<\/p>\n
![\"Turkish](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2024\/08\/LiraUS-Dollar.jpg\")
<\/p>\nThis surge in demand has made Turkey a critical market for global crypto exchanges to win, as depicted through the booming applications for licenses in the region. In Turkey, as is true in many other countries, digital assets are increasingly seen as a safe haven for individuals and investors to protect their wealth against inflation.<\/p>\n
Regulatory compliance is of utmost importance, as exemplified through Binance\u2019s recent changes. The global exchange has enhanced its operational transparency in Turkey, limiting marketing efforts, and Turkish language options will be phased out to ensure regulatory compliance in the local jurisdiction. This also exemplifies the importance of winning market share in this particular country to capitalize on the revenue available from rapidly increasing trading volumes.<\/p>\n
Secondary legislation<\/h2>\n
The next set of regulations is expected to define some of the key industry terms to reduce ambiguity in the industry. These include typical terms such as:<\/p>\n
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Crypto assets<\/p>\n<\/li>\n
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Crypto wallets<\/p>\n<\/li>\n
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Crypto Asset Service Providers (CASPs)<\/p>\n<\/li>\n<\/ul>\n
There is likely to be a grace period until this legislation is in effect, giving exchange firms time to develop the infrastructure to comply with these regulations. For firms looking to gain a crypto license in Turkey, time is of the essence.<\/p>\n
The Turkish government\u2019s proactive approach to crypto regulation, coupled with the significant interest from major players, serves as great evidence.<\/p>\n
New Thailand Prime Minister Aims to Strengthen the Thai Crypto Industry<\/h2>\n
Paetongtarn \u201cUng Ing\u201d Shinawatra, the leader of the Pheu Thai Party, has just become the country\u2019s 31st Prime Minister. Her vote saw 319 in favor, 145 against, with 27 abstentions, evidencing a significant majority in her favor.<\/p>\n
Immediately after her win, she declared her commitment to the country\u2019s continued digital policies, particularly its digital wallet initiative<\/a>. Regulators in Thailand have advocated for the crypto sector for many years, most notably the Thai SEC, who have endorsed the industry regardless of which party was running the country. The SEC recently launched a sandbox policy for crypto-related businesses.<\/p>\n
Such developments continue to aid the industry\u2019s growth in the continent of Asia. For more information on crypto regulations in Asia, read:<\/p>\n
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Hong Kong Crypto Regulation<\/a><\/p>\n<\/li>\n
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Singapore Crypto Regulation<\/a><\/p>\n<\/li>\n
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Dubai and UAE Crypto Regulation<\/a><\/p>\n<\/li>\n
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Indian Crypto Regulation<\/a><\/p>\n<\/li>\n<\/ul>\n
Will MiCA Force Tether out of the EU?<\/h2>\n
Markets in Crypto Assets (MiCA) is now complete. This European Union (EU) policy has caused a slight shift in stablecoin bragging rights, with Circle, the issuer of USD Coin (USDC) taking the first win. The two largest stablecoins, by far, are Circle\u2019s USDC and Tether\u2019s USD Tether (USDT).<\/p>\n
On July 1st, Circle announced that it was the first stablecoin issuer to meet MiCA\u2019s compliance demands, being granted an Electronic Money Institution (EMI) license from French banking regulator Autorit\u00e9 de Contr\u00f4le Prudentiel et de R\u00e9solution (ACPR)<\/a>.<\/p>\n
This development brings about the first major Euro-backed stablecoin for mass use across the EU zone. Tether, on the other hand, looks doubtful regarding achieving MiCA compliance, primarily due to its supposed ill-reported details on its reserve assets.<\/p>\n
A fundamental aspect of the MiCA stablecoin policy is ensuring that issued stablecoins are backed by sufficient reserve assets, with regular reporting to maintain transparency. Without adequate reserves, a stablecoin cannot be effectively supported or trusted.<\/p>\n
Coinbase Challenges the SEC on DEX Regulation<\/h2>\n
The Securities and Exchange Commission (SEC) has attempted to pass a new regulation that regulates Decentralized Exchanges (DEXs) according to the same rules as traditional financial exchanges. Ultimately, a DEX would require a license to operate as a trading system under the SEC.<\/p>\n
While this displays some movement in American crypto policy, Coinbase executive Paul Grewal (Chief Legal Officer) expressed major concerns over the SEC\u2019s ambitions and intentions. Labeling the regulatory move as a \u2018poorly researched<\/a>\u2019 proposal, he requested that the SEC withdraw it and conduct further research into the logistics of DEX regulation.<\/p>\n
This move further strengthens Coinbase’s position as a regulatory thought leader, suggesting that industry players should be consulted and included in policy creation rather than excluded from discussions.<\/p>\n
Tether\u2019s lack of transparency has already cost them dear, with Bitstamp delisting their Euro-backed stablecoin due to noncompliance with MiCA regulations. It appears this could become an increasingly common pain for the world\u2019s largest stablecoin issuer in the Eurozone.<\/p>\n
The American Presidential Election & Crypto Regulation<\/h2>\n
American crypto policy has been a pivotal narrative for some time. The US election battle, now between Donald Trump and Camala Harris, could prove to be the decisive focal point in American policy.<\/p>\n
The Biden administration, through the SEC and Gary Gensler, has taken a tough stance on the industry, deciding that further regulation was not necessary. As the election approaches, however, Donald Trump has made it extremely clear that if elected President, he will pass further regulation, ensure regulatory clarity, and make America a \u2018crypto hub.\u2019 Whether Trump truly believes in the crypto sector is neither here nor there. Even if his advocation for the sector is purely a political tool, it has given him a clear USP versus his opposition in the Democratic party.<\/p>\n
Quite contrary to the Republican stance, Democratic opinion remains ambivalent. Major Democrats are endorsing a stance similar to Trump\u2019s, but the Democratic presidential nominee, Harris, has not publicly or definitively taken a stance.<\/p>\n
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