Introduction
In recent years, Türkiye has emerged as a dynamic market for cryptocurrency and blockchain technologies, drawing significant attention from both local entrepreneurs and international investors. However, establishing and operating a crypto business in Türkiye requires more than just technical expertise and market vision; it demands a clear understanding of the country’s regulatory environment, which is evolving rapidly and contains significant legal uncertainties. This article examines the key regulatory challenges, the expected licensing framework, and practical advice for CEOs, founders, and investors aiming to succeed in Türkiye’s growing crypto sector.
1. The Legal Status of Cryptocurrencies and Crypto Businesses in Türkiye
Türkiye does not recognize cryptocurrencies as legal tender, yet there is no outright ban on their use, trading, or holding. The market for crypto assets in Türkiye has exploded, particularly after currency fluctuations and economic pressures increased the demand for alternative investment vehicles.
Key Authorities Involved:
- Ministry of Treasury and Finance: Main regulatory body signaling and preparing crypto asset laws.
- Central Bank of the Republic of Türkiye (CBRT): Banned the direct use of crypto assets for payments but does not prohibit trading.
- MASAK (Financial Crimes Investigation Board): Supervises AML/CTF compliance and issues binding guides for crypto asset service providers.
- Capital Markets Board (CMB): Expected to play a key role in the upcoming regulatory framework, especially for ICOs, tokenization, and crypto investment products.
2. Current Regulatory Framework: Uncertainties and Practical Realities
a) Lack of a Dedicated Licensing Regime (as of mid-2025)
Currently, there is no explicit licensing procedure for crypto exchanges or wallet providers in Türkiye. However, all companies operating as a “crypto asset service provider” must:
- Notify MASAK prior to starting operations,
- Implement and document robust AML/KYC procedures,
- Report suspicious transactions and keep records for at least 8 years.
Practical Tip:
Most market players operate as standard limited liability or joint stock companies, adapting their articles of association to cover crypto asset services. However, MASAK’s binding communiqués and guidelines are, in practice, treated almost as a de facto licensing regime.
b) Pending Crypto Asset Law
Türkiye’s Parliament continues to debate a comprehensive “Crypto Asset Law.” The draft legislation, when enacted, is expected to:
- Introduce a licensing and supervision regime for crypto asset service providers,
- Define clear capital adequacy, IT security, and insurance requirements,
- Prohibit unauthorized or unlicensed platforms,
- Allow for the closure or blocking of non-compliant businesses,
- Place additional obligations regarding customer funds, risk management, and investor protection.
Expected Timeline:
Although the law has been postponed several times, most analysts expect its adoption by the end of 2025. Early movers who align themselves with anticipated requirements may gain a strong competitive advantage.
3. Key Regulatory Challenges and Compliance Obstacles
a) Ambiguity in Definitions and Scope
Terms such as “crypto asset,” “crypto asset service provider,” and “crypto custody” are still not defined in binding law, creating room for legal risk. Many service providers operate in this legal gray area.
b) Banking and Financial Services Integration
Opening a corporate bank account in Türkiye remains a significant challenge for crypto businesses. Most traditional banks are highly risk-averse, and require detailed risk analysis, source of funds proof, and ongoing reporting.
This banking gap leads to operational delays and increased costs, often pushing startups to seek international banking alternatives or partner with fintech-friendly banks.
c) AML/KYC Compliance Burden
MASAK’s requirements are on par with European standards, demanding not only comprehensive KYC procedures but also real-time monitoring and detailed reporting. The compliance burden can be heavy for smaller startups.
d) Uncertainty in Taxation and Financial Reporting
While corporate tax rates apply to crypto businesses, the VAT status of crypto transactions and capital gains tax on crypto asset trading remains legally ambiguous. A lack of clear guidelines can result in retroactive tax investigations or disputes.
4. What Will Change with the New Crypto Asset Law?
The anticipated law will likely:
- Mandate licensing by a dedicated regulatory authority (probably CMB),
- Require minimum paid-in capital (e.g., 30–50 million TRY for exchanges),
- Impose stringent IT security, risk management, and insurance rules,
- Introduce ongoing regulatory audits and annual compliance checks,
- Prohibit the offering of crypto asset services without a license (criminal and administrative sanctions),
- Require mandatory segregation and protection of client assets,
- Set explicit investor compensation and dispute resolution mechanisms.
Action Point:
Crypto businesses operating in Türkiye should immediately prepare by upgrading compliance programs, developing internal audit capabilities, and strengthening relationships with legal advisors and regulatory authorities.
5. Regulatory Enforcement and Litigation Risk
MASAK has the power to impose severe administrative fines, suspend activities, and block accounts for non-compliance.
With the introduction of new legislation, further sanctions—including criminal liability and forced business closure—will be possible.
Proactive risk management, internal compliance, and legal defense strategies are crucial for survival and growth.
6. Foreign Ownership and International Partnerships
There is no restriction on foreign shareholding in Turkish crypto companies, and joint ventures with international partners are possible. However, all foreign partners must comply with Türkiye’s AML/KYC rules and submit to regulatory scrutiny.
Practical Note: Partnerships with established Turkish banks or fintech firms can help foreign investors navigate the compliance maze and increase the chance of successful licensing.
7. Recommendations for CEOs and Founders
- Monitor Legislative Changes Closely:
Assign an in-house or external legal counsel to track the progress of the Crypto Asset Law and related regulations. - Upgrade Compliance Systems:
Invest in AML/KYC technology, documentation, and personnel to meet MASAK’s high standards. - Establish Banking Relationships Early:
Start negotiations with banks and fintech partners at the incorporation stage; be transparent and proactive about compliance efforts. - Prepare for Audits and Reporting:
Set up robust internal controls and document all compliance steps for potential inspections. - Legal Structure Flexibility:
Use company articles and shareholder agreements that can adapt quickly to regulatory changes.
8. Conclusion
Navigating regulatory challenges and securing a license for a crypto business in Türkiye requires deep understanding, forward planning, and investment in compliance. While the absence of a clear licensing regime creates risks and uncertainty, the pending crypto asset law will dramatically reshape the market—potentially raising both barriers to entry and standards of professionalism.
CEOs, founders, and investors who invest in compliance, monitor legal developments, and build strong regulatory relationships will be best positioned to thrive in Türkiye’s new crypto economy. In the process, working with an expert lawyer would be a good way to understand the legal framework.
Stj.Öğr. Esmanur AKTAŞ
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