Turkey's Pivot Toward Comprehensive Crypto Regulation in 2025

When Turkey announced its new crypto rules in 2024, the market felt a seismic shift. The country moved from a relatively hands‑off stance to a tightly controlled system that lets people trade digital assets but bans any crypto‑based payments. If you’re a trader, a compliance officer, or just curious about how a major emerging market balances innovation with monetary stability, this guide breaks down what happened, who’s in charge, and what it means for everyone involved.

From Permissive to Proactive: The Timeline

• April 2021 - The Central Bank of the Republic of Turkey (TCMB) bans crypto payments for goods and services, signaling the first official restriction.
• May‑June 2024 - Law No. 7518 (the “Amendments to the Capital Markets Law”) is passed, creating clear definitions for wallets, crypto‑assets, and service providers.
• February 2025 - Full AML rules kick in; all crypto firms must obtain a license and submit to regular audits.
• July 2025 - Authorities block 46 unlicensed exchanges, including large DEXs like PancakeSwap, and detain the founder of ICRYPEX on political‑finance allegations.

Key Legislation: Law No. 7518

Law No. 7518 is the cornerstone of the regime. It formally defines terms that were previously vague, such as “Crypto Asset Service Provider (CASP)” and “crypto‑asset custody service.” The law also sets hefty capital thresholds - TRY 150 million (≈$4.1 M) for exchanges and TRY 500 million (≈$13.7 M) for custodians - to ensure only well‑funded players can operate.

Licensing is now mandatory. The Capital Markets Board (CMB) reviews applications, conducts on‑site inspections, and can revoke licences for non‑compliance. This has turned the Turkish crypto market into a more transparent, albeit higher‑barrier, environment.

Who Oversees What? The Tri‑Party Structure

Turkey splits oversight across three specialized bodies:

1. Capital Markets Board (CMB) - Sets regulations, issues licences, and imposes sanctions on CASPs.
2. Financial Crimes Investigation Board (MASAK) - Enforces AML/KYC rules, can freeze crypto accounts, and conducts financial‑crime investigations.
3. Scientific and Technological Research Council of Turkey (TÜBİTAK) - Verifies technical compliance, from blockchain infrastructure standards to security audits.

Having distinct mandates reduces overlap and makes enforcement more predictable for licensed operators.

How Turkey Stacks Up Globally

Turkey’s model mirrors the EU’s focus on licensing but goes further by outright banning payments. Compared with the U.S., Turkey offers a single point of contact (CMB) rather than a patchwork of agencies, which many see as a clarity win.

Impact on the Ground: Traders, Exchanges, and Users

Licensed exchanges report a boost in consumer confidence. KYC processes are now standard, and regular audits have reduced fraud complaints. However, the paperwork can feel endless-transactions over 15,000 TRY demand identity verification plus a documented reason, which slows down high‑value traders.

For everyday users, the biggest pain point is the payment ban. People can’t use Bitcoin or stablecoins to buy groceries, pay for rides, or send remittances. Some have migrated to foreign platforms, but the July 2025 crackdown on unlicensed services made that route riskier.

On the positive side, the industry now enjoys a growing consulting niche. Firms specializing in Turkish compliance charge premium rates, and many local startups have hired dedicated risk‑management teams to meet CMB reporting deadlines.

Compliance Blueprint: What a New CASP Needs

• Capital backing - Secure at least TRY 150 million for exchange licences or TRY 500 million for custodial services.
• Risk‑management unit - Hire AML analysts who can flag transactions over the 15,000 TRY threshold.
• Technical audit - Pass TÜBİTAK’s blockchain‑security checklist (consensus algorithm validation, node redundancy, encryption standards).
• Reporting pipeline - Build automated feeds that send daily transaction summaries to the CMB and MASAK.
• Legal support - Retain a Turkish law firm familiar with Law No. 7518 to handle licence renewals and any enforcement queries.

Getting all these pieces in place typically takes 6‑12 months, meaning newcomers should budget both time and money before entering the market.

Looking Ahead: Potential Tightening

Draft legislation under review would expand MASAK’s authority to freeze crypto accounts without a court order, lower the AML transaction threshold to 10,000 TRY, and impose stricter stablecoin transfer limits. Those moves align with FATF recommendations but could further strain users who already find compliance heavy.

Nevertheless, the overall direction stays consistent: allow regulated trading, keep crypto out of everyday payments, and protect the lira. For investors, that means the licensed exchange sector will likely capture a larger market share as unlicensed players get squeezed out.

Quick Takeaways

Turkey's cryptocurrency regulation framework offers clarity for licensed operators, harsh barriers for newcomers, and a strict ban on crypto payments. The tri‑agency oversight (CMB, MASAK, TÜBİTAK) provides a comprehensive safety net, while high capital requirements concentrate power in a few well‑funded exchanges. Keep an eye on upcoming AML tweaks if you plan to do business in Turkey.