The next wave of crypto adoption in the region is likely to come from citizens in unstable autocracies or those facing crushing inflation in countries like Iran and Lebanon.
Crypto-asset companies will be supervised by the Capital Markets Board and will need to set aside minimum capital requirements.
The country is rushing to regulate the crypto market after two local crypto exchanges went offline in April.
The country's latest move to rein in cryptocurrencies went into effect immediately.
Interpol has issued a red notice for the CEO who has fled to Albania.
Authorities are also contemplating a capital threshold for crypto exchanges and education requirements for the executives at the firms, Bloomberg said, citing an unnamed official.
A bipartisan bill addressing cryptocurrencies made it through the House of Representatives. Next up: the Senate.
The head of Turkey’s central bank ruled out a total ban of cryptocurrencies and said a wide range of crypto regulations is coming within two weeks, Trade Moneta reported.
It's the second crypto platform in a week to face troubles in a country that is banning the use of cryptocurrencies for payments.
April has not been a kind month to crypto in Turkey.
The crypto exchange reportedly has been subject to a legal complaint by its users alleging that hundreds of millions of dollars had been stolen.
“The biggest fear for many crypto traders has always been that big governments might impose harsh restrictions on cryptocurrencies,” said one analyst.
Turkey's crypto ban sets a bad precedent for other countries mulling similar moves.
The measure, to go into effect April 30, comes as the use of crypto had risen due to a plunge in the price of the lira.