Turkey's New Cryptocurrency Regulations: A Comprehensive Overview
Following a long period of inactivity, Turkey has taken significant steps to regulate its cryptocurrency market, introducing detailed secondary legislation that clarifies the legal framework for crypto asset service providers. These regulations aim to ensure transparency, consumer protection, and compliance with international standards while fostering innovation in the digital asset sector.
Key Regulatory Framework for the Turkish Crypto Market
The new regulations are outlined in two main communiqués published in the Official Gazette on March 13, 2025:
Communiqué I (III-35/B.1) establishes rules for crypto asset service providers’ founding and operational principles.
Communiqué II (III-35/B.2) details operational procedures, capital adequacy requirements, and other compliance measures for these providers.
Founding and Licensing Requirements for Turkish Crypto Companies
Crypto asset service providers must meet stringent conditions to operate legally:
Corporate Structure: Providers must be established as joint-stock companies with shares issued in cash and registered by name.
Minimum Capital: Exchanges must maintain a minimum paid-in capital of 150 million TL, while custodians require 500 million TL.
Transparency: Founders must meet strict qualifications, including financial integrity and a clean legal record.
To obtain operational licenses from the Capital Markets Board (SPK), providers must also comply with organizational requirements such as employing qualified personnel, implementing robust internal control systems, and integrating with Turkey’s Central Securities Depository (MKK).
Operational Guidelines
The legislation introduces comprehensive rules governing crypto platforms’ operations:
Customer Identity Verification: Providers can onboard customers remotely using video identification methods. Platforms must ensure uninterrupted processes and employ trained personnel for identity verification.
Advertising Restrictions: Crypto platforms are prohibited from making misleading claims, promising guaranteed returns, or incentivizing users through high-reward campaigns or referral programs.
Prohibited Activities: Providers cannot engage in industrial or agricultural activities, collect deposits, or conduct leveraged trading of crypto assets.
Custody and Security Requirements
The regulations place a strong emphasis on safeguarding customer assets:
Asset Segregation: Customer assets must be stored separately from platform assets. Authorized custodians must hold at least 95% of customer crypto assets.
Key Management: Private keys must be stored securely within Turkey. Platforms are responsible for maintaining control over these keys.
Liquidity Reserves: Platforms are required to hold liquid reserves equivalent to 3% of customer assets under custody.
Listing Standards for Crypto Assets
Platforms can only list crypto assets that meet strict criteria, including compliance with smart contract audits and legal requirements. Tokens linked to prohibited activities or those offering excessive privileges to issuers are barred from listing.
Compliance Deadlines
The legislation outlines various deadlines for compliance:
By March 31, 2025, platforms must establish organizational structures, implement conflict-of-interest policies, and prepare risk disclosure forms for customers.
By June 30, 2025, existing providers must apply for operational licenses and meet personnel qualifications.
By December 31, 2025, platforms must sign agreements with custodians and renew framework contracts with customers.
Impact on the Market
On the positive side, the regulations enhance investor confidence by ensuring transparency and security. Alignment with international standards positions Turkey as a competitive player in the global crypto market.
Nevertheless, smaller firms may struggle to meet capital requirements and compliance costs. Operational restrictions could limit certain innovative business models and prevent start-ups from entering the market.
All in all, the clarification of the relevant regulations is significant, considering the high crypto adoption and the innovation appetite of Turkish consumers. Such clarity could allow new crypto firms to test new business models in the market while boosting consumers' confidence in investing in alternative currencies.
What’s Next for the Turkish Crypto Market?
Turkey’s new regulatory framework represents a decisive step toward institutionalizing its cryptocurrency market. While fostering innovation and protecting investors, these measures also reflect the country’s commitment to aligning with global standards. As the industry adapts to these changes, Turkey could emerge as a key hub for regulated digital asset activities in the region.
Would you like to learn more? Contact us to speak to our licensed professionals, legal experts, and lobbying experts about how the new crypto regulations in Turkey can boost your market presence or enable your market entry.
