What happened?
Turkey has become the MENA region’s largest crypto market, recording nearly $200 billion in annual transactions—about four times the UAE’s $53 billion. Chainalysis and other data show much of that activity looks speculative, with altcoin volumes surging and stablecoin trading declining. At the same time retail trading has slowed while institutional activity and gross crypto inflows (over $878 billion since early 2021) remain strong.
Who does this affect?
Everyday Turks using crypto as a refuge from lira devaluation face stricter KYC, withdrawal holds and stablecoin transfer caps that change how they can move money. Exchanges and institutional players are affected too: bigger firms face higher compliance costs and some (like Coinbase and Binance) have scaled back Turkey plans, while local platforms must meet new capital and audit rules. The wider MENA market also feels it, since Turkey’s huge volumes shift liquidity, trading patterns and price action across the region.
Why does this matter?
For markets, Turkey’s scale and shift toward speculative altcoins raises liquidity and volatility risks that can amplify price swings regionally and beyond. Tighter rules and exchange exits could concentrate trading on a few compliant platforms, raising costs and altering where capital flows. Overall, the trend shows crypto in Turkey is becoming more institutional and regulated, which changes risk profiles for investors and could influence global exchange strategies and regulatory responses.