Market Intelligence
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Turkey Financial Services The Future of Cryptocurrency Market

The future of the cryptocurrency market in Türkiye looks set to experience substantial growth and regulatory advancements. Between 2024 and 2030, the market is anticipated to undergo several changes, with comprehensive forecasts spanning various sectors such as market revenues, transaction volumes, and more, including the differentiation by technology type, service providers, and organizational scale among others.

Despite the 2021 announcement in the Official Gazette of the Republic of Türkiye banning cryptocurrency as a payment method, Türkiye is now poised to regulate and tax cryptocurrencies in early 2024. This shift signifies a strong commitment to incorporating digital currencies into its legal and financial frameworks. Türkiye, currently ranked as the fourth-largest nation in cryptocurrency transaction value, is expected to see its user base on digital crypto platforms exceed 15.25 million by 2028, according to Statista. This surge is driven not only by macroeconomic factors but also by a keen interest in innovation and technology among the country’s youth.

Other nations like El Salvador, Singapore, Slovenia, Portugal, Switzerland, and Germany have already made strides in structuring their cryptocurrency markets, attracting investors and creating a safer trading environment. These countries aim to provide a secure atmosphere for trading by implementing reforms. Notably, El Salvador has exempted foreign investors from taxes on profits from bitcoin. Companies holding financial assets in Bitcoin in El Salvador are not subjecting of taxes. Also, Bitcoin was designated as a legal tender in El Salvador, alongside the U.S. dollar. The Bitcoin law on September 7, 2021, mandates that all business must accept transactions based on the Bitcoin, except for the ones that do not have the proper technological infrastructure (Nasdaq, 2021). 

Türkiye’s Medium-Term Program (MTP) for 2024-2026, which kickstarts the budgeting process, outlines the country’s macro policies and principles. It highlights the support for digital transformation, including advancements in artificial intelligence, big data, and blockchain, aiming to bolster the industrial and service sectors. Türkiye’s strategy to integrate blockchain technology into its economy and its plans to regulate and tax cryptocurrencies align with global movements toward adopting digital currencies. These efforts could position Türkiye as a key player in the global blockchain and cryptocurrency markets, attracting foreign investment. Moreover, upcoming regulations on cryptocurrency exchanges aim to enhance transparency and monitoring, further securing Türkiye’s position in the digital economy. 

Opportunities for US Companies

  • Regulatory Development and Advisory Services: As Türkiye advances towards the regulation and taxation of cryptocurrencies in early 2024, a clearer legal framework for blockchain and crypto-related activities is anticipated. This evolution presents U.S. companies with opportunities to offer compliance, legal advisory, and technology solutions tailored to these new regulations, especially for those looking to enter or expand in the Turkish market.
  • Growing Market Opportunity: Analysis indicates that the Turkish cryptocurrency market is poised for significant growth, presenting a lucrative opportunity for U.S. companies. By offering blockchain solutions across diverse sectors such as finance, banking, supply chain, and healthcare, U.S. businesses can capitalize on this expansion. The Turkish government’s aim for a more efficient and transparent crypto market suggests that partnerships with Turkish firms and joint ventures could smooth the way for U.S. blockchain solutions to penetrate the Turkish market.
  • Educational and Developmental Initiatives: Given the anticipated market growth and the keen interest from both Turkish society and international investors, U.S. firms specializing in blockchain education, training, and consultancy services are likely to find a receptive audience. Offering workshops, certification programs, and consultancy on blockchain adoption and strategy implementation could prove beneficial. Moreover, U.S. investors may discover opportunities in supporting innovative startups and projects within Türkiye’s local ecosystem.
  • Informative Events and Summits: Engaging in or sponsoring blockchain-focused events and summits in Türkiye could afford U.S. companies valuable networking opportunities, enhance brand visibility, and provide insights into the local market dynamics. Given Türkiye’s strategic position as a gateway between Europe and Asia, U.S. companies could also explore regional opportunities across Eurasia and the Middle East.

For more information or to learn about the future of cryptocurrency market in Türkiye, please contact Finance Services Lead Ali Bestas.  
Ali Bestas
Financial Services Lead