Crypto Overview in 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 and Regulatory Framework

Cryptocurrency Status

Turkey enacted its first comprehensive cryptocurrency legislation with Law No. 7518, published in the Official Gazette on 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 a distinct category of digital property rather than fitting them into an existing financial instrument category.

Cryptocurrencies are legal to hold, buy, sell, and trade in Turkey. They are not legal tender and cannot be used to pay for goods or services: a Central Bank of the Republic of Turkey (CBRT) regulation of April 2021, published in Official Gazette No. 31456, imposed that payment prohibition and it remains in force. NFTs are explicitly excluded from the scope of Law No. 7518, meaning entities dealing exclusively in NFTs do not require a Crypto Asset Service Provider (CASP) license. DeFi activities lack explicit regulatory guidance; classification depends on whether the activity involves service intermediation through electronic trading platforms.

Tax Treatment

Turkey does not have a dedicated crypto tax regime as of mid-2026. Standard corporate income tax applies to companies holding crypto assets on their balance sheets. Individual crypto gains have remained largely untaxed due to the absence of specific legislation targeting retail investors.

In March 2026, the ruling AK Party introduced a broad economic bill that included a 0.03% transaction tax on crypto buying, selling, and transfers via regulated platforms, alongside a 10% withholding tax on gains from regulated platforms. The Parliamentary Planning and Budget Committee approved the 0.03% transaction levy on March 4-5, 2026, while rejecting the 10% withholding proposal. However, on March 26, 2026, the crypto-related provisions were withdrawn from the omnibus bill before a full parliamentary vote, following negotiations between the ruling party and the opposition. As of May 2026, no crypto-specific tax is in force. 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, Sermaye Piyasası Kurulu) is the primary regulator, responsible for licensing, supervising, and regulating all CASPs under the authority granted by Law No. 7518. In March 2025, the CMB published detailed secondary regulations, including Communiqué III-35/B.1 on CASP establishment and operational principles and Communiqué III-35/B.2 on working procedures and capital adequacy, both published in Official Gazette No. 32840 on March 13, 2025.

MASAK (Mali Suçları Araştırma Kurulu, Financial Crimes Investigation Board), operating under the Ministry of Treasury and Finance, handles AML/CFT enforcement and designated CASPs as obligated parties under Law No. 5549 on the Prevention of Laundering Proceeds of Crime. In June 2025, MASAK published General Communiqué No. 29 in Official Gazette No. 32940, introducing stablecoin transfer limits, mandatory holding periods for withdrawals, and enhanced KYC requirements. The 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.

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 progressed to testing expanded retail and wholesale payment scenarios, including 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 had not yet been launched as of mid-2026. Working groups are also exploring public sector blockchain applications in land registry, customs, and diploma verification.

Crypto License in Turkey

Turkey’s CASP licensing framework, established by Law No. 7518 and detailed in the CMB’s March 2025 communiqués, requires all entities providing crypto asset services to Turkish residents to obtain authorization from the CMB. The framework is a two-tier system: providers must first obtain an establishment license and then an operating license. Only spot trading is permitted; leveraged, margin, and derivative crypto trading are prohibited. The CMB has actively enforced the regime, blocking access to dozens of unlicensed foreign exchanges, and as of mid-2025 approximately 60 platforms held active status while around 45 were in the liquidation process.

Licensing Requirements

For an establishment license, CASPs must be incorporated in Turkey as joint-stock companies with shares in registered form and fully paid in cash. The minimum establishment capital is TRY 150 million (approximately USD 4.1 million) per Communiqué III-35/B.2, with activity-based tiered capital thresholds under Communiqué III-35/B.1 applied separately to trading platform services and custody providers. Management must have at least five years of relevant experience in capital markets or finance. ISO/IEC 27001 information security certification is required. Data centers must be physically located within Turkey, and IT infrastructure must comply with technical criteria set by TÜBİTAK (the Scientific and Technological Research Council of Turkey).

Capital adequacy obligations are ongoing: shareholders’ equity may not fall below initial capital; at least 25% of equity must consist of paid or issued capital as of the sixth month of each year; and total liabilities may not exceed three times the capital adequacy base. Unauthorized operation of a CASP carries criminal penalties of three to five years imprisonment and a judicial fine of 5,000 to 10,000 days.

Authorized Activities

The operating license requires full organizational structures meeting CMB standards, integration with the Central Registry Agency (MKK), and submission of 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 hot wallets, plus 3% liquid reserves. Customer assets must be legally segregated from provider assets at all times. CASPs are permitted to engage only in activities expressly authorized by the CMB. Foreign centralized platforms targeting Turkish residents must establish a local entity, obtain a CMB operating permit, maintain a Turkish-language website, and appoint local representatives. Foreign platforms that failed to comply by October 2, 2024 became subject to criminal procedures.

Application Process and Timeline

Applications for operating licenses were due by June 30, 2025; platforms that obtained an establishment notification but failed to secure an operating license by June 30, 2026 are subject to liquidation provisions under Communiqué III-35/B.1. Framework agreements between customers and platforms signed before March 13, 2025 were required to be renewed in compliance with Communiqué III-35/B.1 by December 31, 2025. The CMB evaluates applications against capital adequacy, governance, information systems, and AML/CFT compliance criteria. Significant enforcement actions have demonstrated regulatory commitment: the Thodex exchange fraud resulted in an 11,196-year prison sentence and fines exceeding TRY 26 billion, establishing a strong deterrent precedent for the licensing era.

Market Characteristics

Adoption Patterns

Turkey ranks among the world’s largest cryptocurrency markets by population share. Approximately 25% of the population, or 24 to 26 million people, owned crypto assets as of 2025. The country ranks fourth globally by estimated crypto transaction volume according to Chainalysis. Persistent inflation and lira depreciation have been major adoption drivers, making crypto assets attractive as a store of value and inflation hedge for Turkish citizens. The prohibition on crypto payments has channeled activity primarily toward trading and investment rather than retail commerce, contributing to high exchange trading volumes relative to GDP. USDT and other stablecoins have seen particular demand as instruments to hold dollar-denominated value on regulated platforms.

Industry Focus

Turkey’s crypto industry centers on exchange operations and spot trading services. The domestic market includes established platforms such as BtcTurk (operating as PayBMX), Paribu, and Bitexen, alongside the locally incorporated subsidiary of Binance. The regulatory framework’s exclusive focus on spot trading and its prohibition of leveraged products shapes the industry toward exchange-and-custody models. Turkey’s position between Europe and Asia, combined with a young and tech-literate population, reinforces its role as a significant regional crypto hub. The BtcTurk hack of June 22, 2024, in which attackers compromised ten hot wallets and made off with approximately USD 55 million, highlighted the operational security risks facing high-volume exchanges; Binance assisted in freezing approximately USD 5.3 million of stolen assets.

Regulatory Evolution

Turkey’s regulatory trajectory moved from minimal oversight to a comprehensive licensing regime across a concentrated three-year period. The country was added to the FATF grey list in October 2021, partly due to insufficient supervision of sectors vulnerable to money laundering and terrorist financing. This accelerated regulatory development, culminating in Law No. 7518 in July 2024 and the detailed CMB communiqués in March 2025. Turkey was removed from the FATF grey list on June 28, 2024, with its progress on crypto asset supervision cited as evidence of compliance improvement. Virtual assets were rated “partially compliant” under FATF Recommendation 15 at the time of removal; a fifth-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 framework shares structural elements with MiCA in areas such as licensing, custody segregation, and consumer protection, Turkey’s regime is a standalone national framework rather than an adoption of MiCA. AML/CFT measures, including MASAK’s Travel Rule implementation effective February 25, 2025, align with FATF Recommendation 15 standards. MASAK’s June 2025 Communiqué No. 29 further tightened the regime with stablecoin transfer caps and mandatory withdrawal holding periods, signaling continued regulatory development beyond the initial licensing framework.