Turkey

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Turkey enacted its first comprehensive cryptocurrency legislation with Law No. 7518, effective July 2, 2024. The law defines crypto assets as intangible assets created and stored electronically using distributed ledger technology, distributed over digital networks, and capable of representing value or rights. This classification deliberately distinguishes crypto assets from fiat currency, electronic money, and securities, treating them as an independent category of digital property.

Cryptocurrencies are legal to hold, buy, sell, and trade in Turkey. However, they are not legal tender and cannot be used to pay for goods or services under a Central Bank regulation from April 2021 that remains in force. NFTs are explicitly excluded from the scope of Law 7518, meaning entities dealing exclusively in NFTs do not require a Crypto Asset Service Provider (CASP) license. DeFi activities lack explicit regulatory guidance, with classification depending on whether the activity involves service intermediation through electronic trading platforms.

Tax Treatment

Turkey does not currently have a dedicated crypto tax regime. Standard corporate income tax applies to companies holding crypto assets, while individual crypto gains have remained largely untaxed due to the absence of specific legislation. In March 2026, the ruling AK Party introduced an economic bill proposing crypto taxation. The parliamentary Planning and Budget Committee approved a 0.03% transaction tax on buying, selling, and transfers via regulated platforms, while rejecting a broader 10% withholding tax on gains. The bill also includes an explicit VAT exemption for crypto transactions. As of early 2026, the measure still requires full parliamentary approval and presidential assent before becoming law. Turkey has endorsed the OECD Crypto-Asset Reporting Framework (CARF) but has not yet implemented domestic rules for it.

Regulatory Oversight

Turkey employs a multi-regulator model for cryptocurrency oversight. The Capital Markets Board (CMB/SPK) serves as the primary regulator, responsible for licensing, supervising, and regulating all CASPs. In March 2025, the CMB published detailed secondary regulations (Communiques III-35/B.1 and III-35/B.2) setting requirements for CASP establishment, operations, governance, and capital adequacy.

The Financial Crimes Investigation Board (MASAK) handles AML/CFT enforcement, designating CASPs as obligated parties under Law No. 5549. MASAK’s June 2025 General Communique No. 29 introduced stablecoin transfer limits, withdrawal holds, and enhanced KYC requirements. The Central Bank of the Republic of Turkey (CBRT) enforces the prohibition on using crypto assets as payment. The Banking Regulation and Supervision Agency (BDDK) regulates how traditional banks interact with crypto platforms, requiring pre-approval for banks seeking to offer crypto custody services.

Business Environment

Banking Relationships

The CBRT’s April 2021 regulation prohibits using crypto assets as a payment method but does not prevent banks from maintaining relationships with regulated crypto platforms. Banks may facilitate fiat on-ramps and off-ramps with MASAK-compliant, CMB-licensed exchanges and are required to hold customer cash deposits on behalf of CASPs. All fiat transfers must flow through regulated banks, as platforms are prohibited from handling cash directly. Banks must flag transfers to unlicensed platforms. Major Turkish banks, including state-owned institutions, maintain relationships with licensed crypto platforms for fiat transfers.

Licensing Requirements

Law 7518 and the CMB’s 2025 secondary regulations establish a two-tier licensing framework. CASPs must first obtain an establishment license, requiring incorporation as a joint-stock company with fully paid-in capital. Minimum capital requirements range from approximately TRY 50 million for custody-only services to TRY 100-150 million for trading platforms. Management must have at least five years of experience in capital markets or finance, and ISO/IEC 27001 information security certification is required. Data centers must be located within Turkey.

The operating license requires organizational structures meeting CMB standards, internal controls, IT infrastructure compliant with TUBITAK criteria, integration with the Central Registry Agency (MKK), and a proof-of-reserves report. CASPs must maintain at least 95% of customer crypto assets in custody with a maximum of 5% in platform-hosted wallets, plus 3% liquid reserves. Customer assets are legally segregated from provider assets. CASPs are prohibited from offering leveraged, margin, or derivative trading. Only spot trading is permitted. Unauthorized operation carries criminal penalties of 3 to 5 years imprisonment. The CMB has actively enforced this framework, blocking access to dozens of unlicensed foreign exchanges.

Innovation Support

The CBRT has been developing the Digital Turkish Lira since 2022, completing a proof-of-concept phase with initial payment transactions. The project has progressed to testing expanded retail and wholesale payment scenarios, offline resilience, and cross-border interoperability. In September 2025, the CBRT issued a public call for participation covering tokenization, programmable payments, self-sovereign identity, and machine-to-machine payment scenarios. The 2025 Presidential Annual Program called for establishing a regulatory sandbox at the Istanbul Financial Center, though this has not yet been launched. Turkey also has working groups exploring public sector blockchain applications in land registry, customs, and diploma verification.

Market Characteristics

Adoption Patterns

Turkey has one of the highest cryptocurrency adoption rates globally, with approximately 25% of the population owning crypto assets and an estimated 24 to 26 million users. The country processed nearly $200 billion in crypto transaction volume in 2025. High adoption has been driven in part by persistent inflation and lira depreciation, which have made crypto assets an attractive store of value and investment vehicle for Turkish citizens. The prohibition on crypto payments has channeled activity primarily toward trading and investment rather than retail commerce.

Industry Focus

Turkey’s crypto industry centers on exchange operations and trading services, with dozens of domestic platforms operating or seeking licenses under the new framework. The market is characterized by high trading volumes relative to the country’s GDP and strong retail participation. The regulatory framework’s emphasis on spot trading and its prohibition of leveraged products shapes the industry toward simpler exchange models. Turkey’s strategic position between Europe and Asia, combined with its large and young population, positions it as an important crypto market in the region.

Regulatory Evolution

Turkey’s regulatory trajectory has moved decisively from minimal oversight to comprehensive regulation. The country was added to the FATF grey list in October 2021, partly due to insufficient supervision of sectors vulnerable to money laundering. This prompted accelerated regulatory development, culminating in Law 7518 in 2024 and detailed secondary regulations in 2025. Turkey was removed from the FATF grey list in June 2024, with its crypto regulatory framework cited as evidence of compliance improvement. A FATF 5th-round mutual evaluation onsite visit took place in November 2025, with results expected at the June 2026 plenary.

While Turkey is an EU candidate country and its regulatory framework shows structural similarities to the EU’s MiCA regulation in areas like licensing, custody, and consumer protection, Turkey’s framework is a standalone national regime rather than an adoption of MiCA. AML/CFT measures, including MASAK’s travel rule implementation (effective February 2025), align with FATF Recommendation 15 standards. Notable enforcement actions, including the Thodex exchange fraud case resulting in an 11,196-year prison sentence and over TRY 26 billion in fines, have demonstrated the authorities’ commitment to investor protection.

For Current Information:

• Capital Markets Board of Turkey (CMB/SPK)
• Financial Crimes Investigation Board (MASAK)
• Central Bank of the Republic of Turkey (CBRT)
• Banking Regulation and Supervision Agency (BDDK)
• FATF Turkey Country Page