Coinbase, one of the world’s largest cryptocurrency exchanges, proposes to purchase BtcTurk, the oldest crypto exchange firm in Turkey, for about $3.2 billion. BtcTurk was established on the 1st of July, 2013, with headquarters in Istanbul and a user base of over 4.5 million.
Expansion Of Coinbase
The revelation, which Turkish media outlets emphasized, suggests that Coinbase might complete the acquisition of BtcTurk, which has a monetary value of more than $3 billion soon. According to reports, Coinbase has been eyeing the Turkish platform, and this acquisition will allow it to emerge as a major cryptocurrency firm in Turkey.
Coinbase has previously shown plans to extend the company’s operations to any state where cryptocurrency usage is permitted. Coinbase also announced plans to buy 2TM, a cryptocurrency exchange located in Brazil, for $2.1 billion in March, with the transaction scheduled to finalize in April.
According to info provided by Coinbase executives, the acquisition of BtcTurk might be completed before next month after a thorough review of the terms and circumstances of the agreement. In addition, there may be the option of an exchange of shares in lieu of the agreement.
The current transaction has been covered by Bloomberg and Mergermarket, two popular news organizations. An official agreement might be drafted shortly after the terms and conditions have been finalized. However, the fact that none of the two cryptocurrency exchange firms has officially acknowledged the transaction should not be overlooked.
Several studies have shown that the Turkish market for cryptocurrency investors and brokerage businesses has great potential. According to Statista, investment in crypto assets in Turkey has risen at a pace comparable to that of the 5th largest nation. Furthermore, many other cryptocurrency exchanges, such as OKX, Bybit, and Binance, are already operational in Turkey.
Turkish authorities are also interested in encouraging residents to invest in the most up-to-date metaverse technology available. Turkish investors are pouring millions of dollars into the acquisition of virtual estates.
Cryptocurrency Regulation In Turkey
Although the citizens have spent millions on metaverse technology, Turkish governments have shown little interest in putting their money into digital assets thus far.
The Central Bank of Turkey decided in 2021 that the use of crypto to buy and sell local commodities would be prohibited owing to the substantial loss risks connected with cryptocurrency transactions. In 2021, two famous Turkish cryptocurrency exchanges, Vebitcoin and Thodex, went bankrupt, resulting in the loss of millions of dollars in assets for its consumers.
Although the regulatory framework in Turkey is unpredictable, three well-known cryptocurrency exchanges, Binance, Bybit, and OKX, continue to conduct crypto-related commercial operations there. However, in December, Binance was hit with a punishment of 8 million lira, equal to $751,334, for violating crypto regulations.