Coinbase, the world’s largest crypto exchange based in the United States, plans to pay about $3.2 billion to acquire BtcTurk, Turkey’s oldest and most well-known crypto exchange.
BtcTurk is a Turk-based crypto exchange that was founded on July 1, 2013, and has a portfolio of 4.5 million customers. Its headquarters are in Istanbul, Turkey.
Coinbase Expansion In Global Business Ventures
According to the news highlighted by Turkish media channels, Coinbase could complete the BtcTurk purchase deal with a cash value of above $3.0 billion in a short period. As per reports, BtcTurk is on the radar of Coinbase, and Coinbase could become a prominent crypto investor in Turkey. The officials engaged in the subject business deal reported that Coinbase might spend shares and cash to own the BtcTurk exchange.
Coinbase had already shown interest in expanding the business across every state where crypto investment is legal. In March, Coinbase also disclosed planning to purchase a Brazil-based crypto exchange, 2TM, worth $2.1 billion, and the deal is expected to complete in April.
According to Coinbase officials, the acquisition of BtcTurk might be completed by the end of April after a thorough review of terms and conditions. There may also be the option of exchanging shares in exchange for the purchase agreement.
The current deal has been covered by Mergermarket and Bloomberg, two well-known news outlets. It’s also expected that the terms and conditions will be finalized soon, and that a formal agreement will be written. It’s worth mentioning, though, that none of the two exchanges has confirmed the transaction.
According to studies, the Turkish market has a lot of promise for cryptocurrency investors, especially brokerage firms. According to Statista, digital asset investment in Turkey grew at a rate comparable to the fifth-largest country in the world. Furthermore, numerous other cryptocurrency exchanges, such as Bybit, OKX, and Binance, are already active in Turkey.
The Turkish government also wants residents to invest in cutting-edge metaverse technologies. Turkish companies are spending millions of dollars on virtual reality space and virtual land.
Risks Associated With Crytpo Investors In Turkey
Although Turkish citizens have invested millions of dollars in metaverse technologies, Turkish politicians are still not showing so much interest in investing in digital assets. Turkish President Tayyip Erdogan had no interest in holding cryptocurrencies and preferred to transact with its currency to maintain its identity.
The Central Bank of Turkey applied a ban on using cryptocurrencies to sell and purchase local commodities in April 2021 due to high loss risks associated with the crypto transactions.
In April 2021, Two famous Turkish crypto exchanges named Thodex and Vebitcoin collapsed, causing asset loss of million users.
Although Turkey has an unpredictable regulatory atmosphere, three famous crypto exchanges, Bybit, Binance, and OKX, are still doing crypto business ventures there. However, Binance faced a fine of eight million lira worth $751,314 against various regulatory violations in December 2021.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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