Introduction:

Turkey stands as one of the most significant countries in the global cryptocurrency sector. Interest in cryptocurrencies in Turkey dates back to 2008–2009. Having caught the trend from the very beginning and formed a large community, one in every five people in Turkey invests in cryptocurrencies. With a cryptocurrency ownership rate of 19.3% relative to its population, Turkey ranks as the third country in the world with the highest number of crypto investors.

As a result, Turkey has become one of the fastest-moving countries in terms of regulatory development worldwide. Initial legal regulations were introduced in 2021, and by 2024, Turkey had established an official legal framework. These regulations are not only a reflection of technological advancements but also a direct response to economic fluctuations, global regulatory pressures, and the need to ensure investor protection.

What Is the Cryptocurrency Law?

The cryptocurrency law is the legal framework that regulates the use, trading, and custody of digital assets. Through these laws, governments aim to reduce uncertainties in cryptocurrency markets, protect investors, and prevent potential criminal activities.

Cryptocurrencies operate without reliance on a central authority. While this autonomy offers significant freedom, it also introduces certain risks. The law seeks to safeguard both users and the market by addressing issues such as fraud and money laundering risks, market manipulation, tax ambiguities, and investor grievances.

History of the Cryptocurrency Law

In Turkey, official statements made by regulatory authorities regarding cryptocurrencies have undergone significant changes over time. Below, you can find these statements listed in chronological order.

BDDK’s Bitcoin Warning – 2013

On November 25, 2013, the Banking Regulation and Supervision Agency (BDDK) issued a statement regarding Bitcoin. The statement emphasized that Bitcoin is neither issued by any official nor private institution and that no guarantees are provided regarding its value. It was highlighted that Bitcoin is not considered electronic money under Law No. 6493 and is not subject to the supervision and regulation of the BDDK. Additionally, citizens were warned about the serious risks associated with Bitcoin and similar virtual currencies, as they allow for anonymous transactions that could facilitate illegal activities, and due to the extreme volatility of their market value as well as the frequent incidents of wallet thefts and losses.

Source: Anadolu Ajansı

Letter from the Capital Markets Board to Brokerage Firms – 2017

On November 27, 2017, the Capital Markets Board of Turkey (SPK) sent an informational letter to brokerage firms following the sharp increase in the value of cryptocurrencies and their growing prominence in public discussions. In this letter, cryptocurrencies were defined as virtual currencies, and brokerage firms were warned against conducting spot or derivative transactions based on virtual currencies. The SPK also requested brokerage firms to provide their opinions on whether Bitcoin and similar virtual currencies could be the subject of contracts for difference (CFD) transactions, and whether services could be offered to clients based on derivative instruments linked to virtual currencies.

Source: Bloomberg HT

TCMB Banned Crypto Payments – 2021

On April 16, 2021, the Central Bank of the Republic of Turkey (TCMB) issued the “Regulation on the Non-Use of Crypto Assets in Payments,” prohibiting the direct or indirect use of crypto assets for payments. The regulation, which came into effect on April 30, 2021, also banned payment service providers and electronic money institutions from mediating transactions involving the purchase, sale, custody, transfer, or issuance of crypto assets through related platforms. The regulation was enacted based on the Central Bank Law No. 1211 and the Law on Payment Services No. 6493, with the responsibility for its enforcement assigned to the Governor of the Central Bank.

Source: Official Gazette

The Thodex Scandal – 2021

The biggest event that accelerated the process of regulating the cryptocurrency market in Turkey was the Thodex scandal. Founded in 2017 under the name Koineks, the company rebranded as Thodex in March 2020 and expanded globally. It became Turkey’s fourth domestic cryptocurrency exchange and established the country’s first Bitcoin ATM. In 2020, Thodex obtained a FinCEN MSB license from the United States, earning the distinction of being Turkey’s first globally licensed exchange. Thodex operated in over 120 countries across six continents, reached a trading volume of 25 billion Turkish lira, and ranked second in Turkey according to CoinMarketCap data.

On April 21, 2021, an announcement from Thodex’s official Twitter account stated that the platform would be closed for five days. Shortly after, the company’s owner Faruk Fatih Özer and other executives shut down their social media accounts. Users filed criminal complaints on suspicion of fraud. On April 23, 2021, Faruk Fatih Özer fled to Albania, prompting Interpol to issue a red notice for his arrest.

(Photo Source X: Faruk Fatih Özer during his arrest)

During the investigation conducted by the Anadolu Chief Public Prosecutor’s Office, simultaneous operations were carried out in nine provinces to detain 80 individuals identified as Thodex employees and to examine their digital materials. In the early days, 65 company employees were arrested. In the second indictment, prepared following complaints from 572 victims, a report from the Financial Crimes Investigation Board (MASAK) indicated that the total loss suffered by victims amounted to 94 million Turkish lira.

On August 29, 2022, Thodex founder Faruk Fatih Özer was captured in the city of Vlora, Albania. After a lengthy legal process, he was extradited to Turkey on April 20, 2023, and subsequently arrested. He faces charges of fraud with a potential prison sentence of up to 11,462 years, and his detention continues.

MASAK Published AML Guidelines

On May 4, 2021, the Financial Crimes Investigation Board (MASAK) published the Implementation Guide for Crypto Asset Service Providers. For the first time in Turkey, the term “crypto asset service provider” was officially defined under the Regulation on Measures to Prevent Laundering of Proceeds of Crime and Financing of Terrorism. This regulation marked a significant step in combating money laundering (AML). It also aimed to monitor and place under supervision the cryptocurrency exchanges that had been operating without a formal legal framework.

Source: MASAK

The FTX Scandal

The collapse of FTX in November 2022, due to mismanagement, secret fund transfers, and fraud, had a significant impact in Turkey as well. The inability of Turkish users to withdraw their funds from FTX, combined with the inadequacy of legal remedies, accelerated the preparations for cryptocurrency regulations in the country. FTX had announced on November 26, 2021, that it would operate in Turkey under the name FTX TR.

What Happened?

FTX was a major cryptocurrency exchange founded by Sam Bankman-Fried (SBF) and was once regarded as one of the industry’s most trusted platforms. In November 2022, it was revealed that FTX had a weak balance sheet and had illegally transferred funds to its affiliated company, Alameda Research. Panic ensued after Binance CEO CZ announced that Binance would sell its holdings of FTX’s native token, FTT, leading users to rush to withdraw their funds. FTX faced a severe liquidity crisis, and it was discovered that customer funds had been used to cover Alameda’s bad investments. FTX filed for bankruptcy, resulting in billions of dollars in losses. Sam Bankman-Fried was arrested in the United States and found guilty in 2024.

The Sound of Approaching Regulations

On October 25, 2023, the Presidential Annual Program published in the Official Gazette included legislative initiatives concerning digital assets on its agenda. The program was prepared by the Ministry of Treasury and Finance along with the Presidential Strategy and Budget Directorate. The legislative efforts were assigned to the Ministry of Treasury and Finance, the Revenue Administration, the Capital Markets Board, and other relevant public institutions, with the aim of completing the work within 2024.

Source: Turkish Presidency

Draft Law Submitted

On May 16, 2024, the AK Party parliamentary group submitted a Draft Law Amending the Capital Markets Law to the Presidency of the Grand National Assembly of Turkey (TBMM). Signed by 117 members of parliament, this amendment became the most comprehensive initiative forming the foundation of cryptocurrency regulations in Turkey.

The proposal, announced to the public by AK Party Group Chairman Abdullah Güler, introduced significant rules for crypto service providers and placed these providers under the supervision of the Capital Markets Board (SPK). AK Party Deputy Chairman Dr. Ömer İleri stated that their aim was to protect citizens against risks and to position Turkey as a leader in blockchain technologies.

Source: dromerileri.com

The regulation provided a legal foundation for the sector by introducing an official definition for crypto assets. It imposed various obligations on platforms regarding their organizational structures, capital adequacy, and information technology infrastructures. Additionally, it was announced that a secure record-keeping requirement would be implemented for crypto asset transfers.

Source: TBMM

Law Amendment Approved by Parliament

On June 25, 2024, the Draft Law Amending the Capital Markets Law, which includes regulations concerning crypto assets, was approved by the General Assembly of the Grand National Assembly of Turkey (TBMM).

The Crypto Law Came into Force

On July 2, 2024, Law No. 7518, which had been approved by the Grand National Assembly of Turkey (TBMM), was published in the Official Gazette and officially entered into force. This law became the first comprehensive legal regulation governing crypto assets in Turkey.

Source: Official Gazette

SPK Announcement to Crypto Asset Service Providers

On July 2, 2024, the Capital Markets Board of Turkey (SPK) announced that all crypto asset service providers operating or intending to operate in Turkey are now subject to the regulation and supervision of the SPK under Law No. 6362, the Capital Markets Law.

The announcement stated that any environment where the purchase, sale, clearing, transfer, or custody of crypto assets is carried out as a regular, commercial, or professional activity falls within the scope of the Law. It was emphasized that sanctions would be imposed on those who do not comply with the regulations. Crypto exchanges intending to continue their operations in Turkey were required to apply within one month, while those intending to cease operations were instructed to complete their liquidation processes within three months.

Source: SPK

New Principles and Guidelines from the SPK

On September 30, 2024, the Capital Markets Board of Turkey (SPK) issued new principles and guidelines for crypto asset service providers. Customer accounts must be clearly defined and cannot be used for purposes other than intended. Cash transactions are to be conducted exclusively through banks or authorized institutions, and in-person cash trading was prohibited. Orders can only be received through the platform’s official website, mobile application, or registered phone lines; social media channels are not permitted for order transactions. All order and transaction records must be securely stored with the use of timestamps. Advertising and promotional activities that promise returns were banned, and advertisements containing misleading information were prohibited. Lending and customer credit practices were also banned.

Source: Anadolu Ajansı

New Anti-Money Laundering Measures from MASAK

On December 25, 2024, the Financial Crimes Investigation Board (MASAK) published new measures in the Official Gazette aimed at preventing money laundering and the financing of terrorism in crypto asset transfers. Part of these measures came into force on February 25, following a two-month transition period. It became mandatory to provide user information for crypto asset transfers amounting to 15,000 Turkish lira or more.

Source: Official Gazette

Secondary Regulations Published

On March 13, 2025, the Capital Markets Board of Turkey (SPK) issued secondary regulations for crypto asset service providers. The regulations detailed the principles regarding establishment, commencement of operations, execution and cessation of activities, as well as the qualifications for managers and personnel, organizational requirements, and the structures for internal audit, internal control, and risk management systems. Additionally, regulations were introduced concerning document recording systems, independent auditing, and proof-of-reserves audits. Further rules were also established for the trading, custody, transfer, and listing of crypto assets.

Source: SPK

Additional Identity Verification Requirement Introduced

On April 25, 2025, an additional identity verification requirement was imposed on cryptocurrency exchanges under MASAK regulations. As of April 25, users are required to complete additional identity verification steps beyond existing KYC procedures, including submitting a proof of residence document and undergoing identity verification via video call.

These regulations aim to establish a safer and more auditable structure for the cryptocurrency ecosystem in Turkey. It is crucial for both investors and service providers to comply with these legal frameworks.

Key Provisions of the Cryptocurrency Law

SPK Authority

Crypto asset service providers (such as exchanges and custodians) must obtain a license from the Capital Markets Board of Turkey (SPK) to operate in Turkey. The SPK holds the authority to grant licenses, conduct inspections, and revoke licenses if necessary. It has also been authorized to allow the issuance of crypto assets outside the Central Securities Depository (MKK) system for capital market instruments. For an establishment and operational license, information systems and technological infrastructure must meet the criteria set by TÜBİTAK (The Scientific and Technological Research Council of Turkey).

Operating License

Institutions operating without obtaining a license from the SPK will be deemed illegal, shut down, and their executives will face heavy administrative fines and imprisonment. Individuals and legal entities operating without authorization will be subject to prison sentences of 3 to 5 years and judicial fines ranging from 5,000 to 10,000 days.

Capital Requirements

Service providers are required to maintain a minimum capital level. Crypto asset platforms must have at least 150 million Turkish lira in capital, while custody institutions must maintain a minimum capital of 500 million Turkish lira. These capital levels must be continuously upheld.

Protection of Client Assets

Client assets must be segregated from the company’s own assets. Even if a company faces financial difficulties, clients’ crypto assets cannot be interfered with. The assets must be held in a manner that clearly proves they belong solely to the clients.

Custody Services

The custody of crypto assets may only be performed by custody institutions licensed by the SPK. Exchanges themselves are not allowed to directly offer custody services and must collaborate with a licensed custodian.

Foreign Platforms

Foreign crypto platforms wishing to provide services in Turkey must establish a company within Turkey and obtain a license from the SPK. Otherwise, their operations will be prohibited and access to their services will be blocked.

On December 12, 2024, in an announcement published by the SPK, access was restricted to 108 cryptocurrency exchanges, including Coinex, MEXC, Bitmex, and HTX. The announcement stated: “The websites listed below have been found to be providing unauthorized crypto asset services to individuals residing in Turkey or offering leveraged trading from abroad. Necessary legal actions have been taken under Article 99/A(3) and Article 99(4) of the Capital Markets Law to block access to these websites.”

Taxation

Income generated from crypto asset trading will be subject to taxation. Detailed regulations regarding Income Tax and Corporate Tax will be announced separately by the Ministry of Treasury and Finance.

Inspection and Penalties

The SPK will regularly inspect service providers. Those failing to comply with the rules may face fines, license revocation, or suspension of operations. If a criminal offense is identified, judicial proceedings will be initiated. Additionally, independent audit firms designated by the SPK will conduct financial audits and information systems audits.

Definition Introduced

For the first time, the law provides a definition for “crypto assets.” Crypto assets are defined as values produced using distributed ledger technology or similar technologies, represented digitally, and transferable. However, they are not considered official (fiat) currencies.

Public Disclosure

Service providers must regularly report their financial statements and significant developments to the SPK. This information will also be disclosed to the public to ensure transparency.

Penalty Provisions in the Cryptocurrency Law

The new cryptocurrency law introduces severe penalties for individuals and institutions that violate the rules. Serious sanctions will particularly apply in cases of unauthorized activities, misappropriation of entrusted assets, and fraud.

Unauthorized Activities

Individuals and institutions providing crypto asset services without obtaining permission from the SPK will be considered engaged in illegal activities. Such persons may face prison sentences ranging from 3 to 5 years and judicial fines between 5,000 and 10,000 days. Platforms operating without authorization will be shut down, and their executives will face administrative fines and prison sentences.

Embezzlement

If the chairman, board members, or other employees of a crypto asset service provider commit embezzlement, they will be subject to prison sentences ranging from 8 to 14 years, along with judicial fines of up to 5,000 days.

Fraudulent Misuse of Assets

Those committing fraud involving crypto assets may receive prison sentences ranging from 14 to 20 years.

Unauthorized Use of Resources from Revoked Platforms

Individuals who unlawfully use the resources of platforms whose licenses have been revoked could face prison sentences of up to 22 years.

Which Exchanges Are Legally Operating in Turkey?

In Turkey, crypto asset service providers must follow specific procedures to operate legally. As part of this process, the Capital Markets Board of Turkey (SPK) has published the “List of Operating Entities” to inform the public.

Being included in this list does not mean that the entities are fully authorized. The list simply indicates that the organizations have declared their intention to operate under the Temporary Article 11 of Law No. 6362. Full authorization will only be granted following a detailed evaluation and licensing process conducted by the SPK.

The current list published by the SPK includes a total of 88 crypto asset service providers.

Among these:

• 10 have applied for custody services,
• 78 have applied for crypto asset service provider operations.

While inclusion in this list is an important step for companies wishing to operate in Turkey’s crypto market, they are not considered fully authorized until they obtain an official license from the SPK.

Source: CMB’s List of Cryptocurrency Exchanges in Operation

Some Exchanges Cease Operations in Turkey

Following the introduction of new regulations for crypto asset service providers in Turkey, some exchanges have decided to cease their operations. In this context, the Capital Markets Board of Turkey (SPK) has published the “List of Entities Declaring Liquidation” to inform the public.

Being included in this list indicates that the relevant organizations have voluntarily withdrawn from offering crypto asset services under the Temporary Article 11 of Law No. 6362 and have entered into a liquidation process.

A total of 17 cryptocurrency exchanges, including global platforms such as Bitget and Coinbase, have decided not to continue offering services in Turkey.

These entities that have declared liquidation will no longer be legally permitted to provide crypto asset services or offer services to users in Turkey.

Kaynak: CMB’s List of Cryptocurrency Exchanges in Liquidation Declaration

Will Cryptocurrency Be Taxed in Turkey?

Following the new regulations regarding cryptocurrencies, one of the most frequently asked questions among investors has been: “Will gains from cryptocurrencies be taxed in Turkey?” Despite much debate on social media, the situation has become clear based on the published information: there is no regulation imposing direct taxes on investors.

Under the new law, no additional tax obligation has been introduced for individual investors regarding profits from buying and selling crypto assets. In other words, individual investors engaging in crypto transactions in Turkey are not subject to direct income tax or any other specific tax.

However, a separate obligation has been imposed on platforms. Crypto asset service providers operating in Turkey must pay 1% of their annual revenues—excluding interest income—from the previous year to the Capital Markets Board (SPK) and another 1% to TÜBİTAK.

These payments must be made by the end of May each year. The aim of this model is not to tax individual investors directly, but rather to provide indirect contributions from the crypto ecosystem to public institutions. Thus, a revenue-sharing system has been established through crypto asset service providers.

Reasons Behind the Cryptocurrency Law

The need for comprehensive legal regulation of the cryptocurrency sector in Turkey had been on the agenda for a long time. In light of global and local developments, lawmakers felt the necessity to take swift and decisive action in this area. The main motivations behind the preparation of the Cryptocurrency Law can be summarized as follows:

Need for Investor Protection

With the rapid growth of crypto markets, the number of individual investors increased significantly. However, this growth, coupled with a lack of regulation, also led to major fraud incidents. Events such as the Thodex scandal in Turkey resulted in thousands of investors being defrauded. Globally, the collapse of FTX demonstrated that the need for cryptocurrency regulation is not just a local concern but a global necessity. The new law aims to protect investors and enhance trust in the market to prevent the recurrence of similar scandals.

Ensuring Financial Stability

Crypto markets are inherently highly volatile. This volatility can impact not only individual investors but also the banking system and the real sector indirectly. As the integration of crypto assets into the financial system increased, concerns over their potential effects on macroeconomic stability became more serious.

The regulations were established to safeguard financial stability and to prevent possible systemic risks.

Preventing Money Laundering and FATF Compliance

In 2021, Turkey was placed on the FATF (Financial Action Task Force) grey list, indicating that the country had inadequate measures to combat money laundering and terrorist financing.

As of June 28, 2024, Turkey was officially removed from the FATF grey list.

Cryptocurrencies, due to their anonymous structures, are seen as vulnerable to being used for money laundering activities.

The new regulations represent a major step toward aligning with AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) standards and meeting the criteria set by FATF. This process played a critical role in Turkey’s removal from the grey list.

EU Harmonization Process and MiCA Framework

The European Union’s MiCA (Markets in Crypto-Assets) regulation aims to bring transparency, accountability, and consumer protection to crypto asset markets.

Since Turkey continues to pursue its economic integration goals with Europe, it seeks to align with a legal framework similar to MiCA.

The new legislative efforts will help Turkey develop a crypto asset regulation that is more compatible with EU norms, providing long-term strategic advantages for the country in both trade and financial relations.

Sectoral and Economic Impacts of Crypto Regulations in Turkey

The requirement for crypto asset service providers to obtain a license from the Capital Markets Board of Turkey (SPK) and undergo regular inspections will create a secure environment for investors. As investors transact through licensed and regulated platforms, the risk of fraud will decrease. The rise in transparency standards will enhance individual investors’ trust in the market.

This development is expected to encourage the acceptance of the crypto asset market by more institutional and long-term investors in Turkey.

Legal Assurance and Increased Investor Confidence in the Sector

The requirement for crypto asset service providers to obtain a license from the Capital Markets Board of Turkey (SPK) and undergo regular inspections will create a secure environment for investors. As investors transact through licensed and regulated platforms, the risk of fraud will decrease. The rise in transparency standards will enhance individual investors’ trust in the market.

This development is expected to encourage the acceptance of the crypto asset market by more institutional and long-term investors in Turkey.

Expansion of Financial Audits and Tax Base

The requirement for crypto exchanges to allocate 2% of their annual revenues (1% each to SPK and TÜBİTAK) to public institutions will introduce a new revenue stream for the government.

Although the state will not directly tax individual investors for now, it will consistently generate income from economic activities within the sector. Moreover, the obligation for service providers to produce financial reports will enable the Ministry of Finance to better monitor the sector and possibly lay the groundwork for direct taxation in the future.

Strengthening Turkey’s International Image

Regulating the crypto market is critical for Turkey’s compliance with FATF standards. Bringing the crypto sector under control in the fight against money laundering and terrorist financing will boost Turkey’s chances of remaining off the FATF grey list.

Additionally, aligning Turkey’s regulatory framework with the EU’s MiCA (Markets in Crypto-Assets) regulations, in line with its economic integration goals with Europe, will strengthen the country’s credibility in the eyes of international investors. This alignment could attract more foreign direct investment and foster the development of Turkey’s fintech sector.

Impact on Innovation and Entrepreneurship

Strict regulations may have both positive and negative effects. As regulations become clearer, crypto startups will operate in a more predictable environment. However, excessive regulation could impose financial and operational burdens on smaller ventures, potentially driving innovative projects abroad.

If Turkey maintains a flexible and progressive regulatory approach that supports innovation, it could become a hub for Web3, DeFi, and blockchain-based projects.

Summary

Turkey has become one of the fastest countries in the world to introduce regulations for the cryptocurrency sector. The first legal steps were taken in 2021, and a comprehensive legal framework was finalized in 2024 and 2025. During this process, institutions such as BDDK (Banking Regulation and Supervision Agency), SPK (Capital Markets Board of Turkey), and TCMB (Central Bank of the Republic of Turkey) played critical roles, while incidents like the Thodex scandal and the FTX collapse accelerated the need for regulation.

The new law introduced licensing requirements for crypto service providers, ensured the protection of investor assets, established minimum capital requirements for platforms, and mandated that foreign exchanges establish a company in Turkey to operate locally. Additional audit and identity verification obligations were also imposed by the SPK, MASAK (Financial Crimes Investigation Board), and other regulatory bodies.

While there is no direct taxation on individual investors, service providers are obligated to transfer 2% of their revenues to the state. With these regulations, Turkey has achieved compliance with FATF (Financial Action Task Force) standards and has been removed from the FATF grey list. There is also a goal to align with the European Union’s MiCA (Markets in Crypto-Assets) regulations.

Conclusion

Cryptocurrency regulations in Turkey have been comprehensively designed to promote investor protection, ensure financial stability, combat money laundering, and align with international standards. These regulations have the potential to enhance Turkey’s international reputation and support the growth of its fintech ecosystem.

Properly implemented, these frameworks could position Turkey as a leading country in Web3 and blockchain technologies.