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Crypto exchange Coinbase is now looking to step into Turkey and is reportedly in the final stage of closing its acquisition deal of BtcTurk.
Crypto exchange Coinbase Global Inc (NASDAQ: COIN) has been looking to expand its presence in overseas locations. As per the recent reports, Coinbase is working on a bid to acquire the Turkish crypto exchange BtcTurk. Reportedly, Coinbase shall be paying a staggering $3.2 billion for the deal.
Acquisition of BtcTurk by Coinbase
MergerMarket’s five sources said that the deal is reportedly in the final stages of its closure. Reportedly, Coinbase has also signed the term sheet and is doing its technical due diligence. Founded back in 2013, Btcturk is the country’s most popular crypto exchange.
It serves more than 4.5 million Turkish crypto investors and employs over 850 people. As per a local news publication, BtcTurk clocked transaction volumes of $116 billion last year in 2021. Well, this could be the right time for Coinbase to make a BtcTurk acquisition knowing the fact that crypto adoption in Turkey is soaring very fast.
This happens as the country’s national currency Turkish Lira has been devaluating very fast. Thus, Turkish citizens are moving to crypto to protect their capital. Furthermore, several Coinbase competitors such as Binance and Bybit have already set up operations in Turkey.
Coinbase’s Global Expansion
As said, crypto exchange Coinbase has been willing to expand its footprint globally. Last month, a reported suggested that Coinbase is set to close the acquisition of 2TM, a Brazilian entity of Mercado Bitcoin, the largest crypto brokerage in Latin America.
As per reports, negotiations between Coinbase 2TM have been taking place over the last year. The agreement for the same could be announced by late April.
On the other hand, Coinbase has already started operations in India despite strict crypto rules. However, following the regulatory heat, the cryptocurrency exchange had to halt UPI payments in India. “Last year we decided India is going to be a huge place. We understand the complexity of the Indian market. It’s a place with a lot of potential,” said Coinbase’s India head Pankaj Gupta.
The demand for crypto has been growing in developing countries. We have seen this particularly true wherein the economic condition is relatively weak. Thus, exchanges like Coinbase see the greater business potential here wherein they can tap into a larger customer base.