Coinbase Withdraws from Turkey After Just Three Months
Leading cryptocurrency exchange Coinbase has announced its exit from the Turkish market, liquidating local operations after only three months of activity.
According to Turkey's Capital Markets Board liquidation list, Coinbase has:
- Withdrawn its earlier submitted market access application
- Filed for business liquidation in Turkey
👉 Why are major exchanges struggling in Turkey?
The company stated: "We continually evaluate market opportunities and adjust based on market conditions, regulatory changes, and internal priorities."
Challenges for Crypto Exchanges in Turkey
Turkey's crypto market presents significant hurdles:
- 14 companies have filed for liquidation
- 77 applicants remain under review (including Binance, KuCoin, OKX, and Bitfinex)
Notable developments:
- Binance and KuCoin removed Turkish language options in September 2023
- Both exchanges halted marketing campaigns targeting Turkish users
MiCA Regulations Impact European Services
Coinbase's strategic adjustments extend to Europe:
- Discontinued USDC yield services for EU users starting December 2023
- Decision driven by MiCA's strict stablecoin regulations
👉 How MiCA is reshaping crypto in Europe
User reactions:
- Sablier CEO publicly criticized the move: "Thanks EU for protecting me from earning USDC yields"
- Widespread community frustration across social media
Frequently Asked Questions
Q: Why did Coinbase leave Turkey so quickly?
A: Likely due to challenging regulatory environment and competitive pressures in the emerging Turkish crypto market.
Q: What does MiCA mean for crypto users?
A: The Markets in Crypto-Assets framework introduces stricter rules for stablecoins and service providers, potentially limiting some products.
Q: Can Turkish users still access Coinbase?
A: Existing users may continue limited access during liquidation, but new account creation and services are discontinued.
Q: Will USDC yields return to Europe?
A: Unlikely until Coinbase develops MiCA-compliant products - no timeline has been announced.
Future Outlook
The crypto industry faces increasing regulatory scrutiny worldwide. These developments highlight:
- The importance of regulatory compliance for exchanges
- Growing pains for crypto adoption in emerging markets
- How major regulations like MiCA are reshaping services
As always, investors should carefully consider risks associated with cryptocurrency volatility and regulatory changes.