Quick Answer
Yes, holding and trading cryptocurrency in Turkey is legal.
- Using crypto for payments has been banned since April 2021.
- Crypto service providers must be licensed and follow AML/KYC rules.
Legal Status of Crypto in Turkey
In Turkey, it is legal to own, buy, and sell cryptocurrencies, but using them for payments is strictly prohibited. This dual status exists because while the Central Bank of Turkey (TCMB) banned crypto payments to protect financial stability, other authorities have moved to legitimize trading activities. Regulatory bodies like the Capital Markets Board (CMB) and the Financial Crimes Investigation Board (MASAK) have established a formal legal framework for the sector. This framework requires crypto asset service providers to obtain licenses and comply with comprehensive Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules.
Current Regulations
As of July 2024, Turkey's primary crypto regulation is the 'Law on Amendments to the Capital Markets Law,' which requires all crypto asset service providers to obtain an operating license from the Turkish Capital Markets Board. This builds on a 2021 regulation from the Central Bank that prohibits using crypto for payments. Furthermore, these providers are classified as 'obliged entities' and must adhere to strict Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols enforced by the Financial Crimes Investigation Board (MASAK).
Regulatory Authorities
Several government bodies share the responsibility of regulating and enforcing Turkey's crypto landscape.
- Capital Markets Board (CMB): The CMB is the primary authority for licensing and supervising crypto asset service providers (CASPs). It sets the rules for platforms, determines which assets can be traded, and ensures investor protection.
- Financial Crimes Investigation Board (MASAK): MASAK is the main enforcer of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations for crypto businesses. It requires firms to follow strict Know-Your-Customer (KYC) protocols and report suspicious transactions.
- Central Bank of the Republic of Turkey (TCMB): The TCMB is responsible for monetary policy and issued the regulation that prohibits using cryptocurrencies for payments. It focuses on maintaining financial stability and oversees the controlled integration of digital assets into the financial system.
- Banking Regulation and Supervision Agency (BRSA): The BRSA oversees banking activities related to crypto, including approving banks that wish to offer crypto asset custody services. It ensures financial institutions comply with regulations when integrating with crypto services to protect market stability.
- The Scientific and Technological Research Council of Türkiye (TÜBİTAK): TÜBİTAK is tasked with evaluating the technical and technological infrastructure of crypto asset service providers. It provides expert opinions and audits to ensure platforms meet required security and operational standards before they can be licensed.
Historical Context
Turkey's crypto journey began with minimal oversight, marked by a 2013 declaration that Bitcoin was not electronic money. The landscape shifted dramatically in 2021 when the Central Bank banned crypto for payments and new laws imposed strict AML/CFT obligations on crypto service providers. This crackdown was a response to market risks and international pressure, including Turkey's placement on the FATF's "grey list." The most significant policy shift came in July 2024 with a new law requiring crypto platforms to obtain an operating license from the Capital Markets Board, formalizing the sector to improve investor safety and compliance.
Compliance Requirements for Businesses in Turkey
- Anti-Money Laundering (AML) Checks: Crypto Asset Service Providers (CASPs) are designated as 'obliged parties' under Turkish law and must implement several key AML measures. These include conducting customer due diligence, monitoring transactions, and reporting any suspicious activities to the Financial Crimes Investigation Board (FCIB), also known as MASAK. Firms are required to report any transaction exceeding an amount set by the Ministry of Treasury and Finance, provide information to authorities when requested, and retain all customer transaction records for a minimum of eight years.
- Know-Your-Customer (KYC) Requirements: A comprehensive KYC process must be completed before establishing a business relationship or executing a transaction. This involves collecting and verifying a customer's identity using official documents like a national ID or passport. The accuracy of a customer's address must also be confirmed through documents such as a certificate of residence or a recent utility bill. These KYC procedures are a prerequisite for any customer interaction.
- Other Mandatory Procedures: Businesses must comply with a range of additional operational rules. This includes obtaining authorization from the Capital Markets Board (CMB) and ensuring their technical infrastructure is audited and approved by TÜBİTAK. Platforms are required to use banks for all customer cash transfers and are prohibited from handling cash directly. They must also maintain secure, immutable electronic log records of all orders and integrate their systems with the Central Securities Depository (CSD) for data transfer.
Why this matters for Cross-Border Payments
Turkey's outright ban on using cryptocurrency for payments directly complicates transactions with Indian entities, forcing businesses back into the traditional banking system. This reliance on conventional channels often translates to slower settlement times and higher costs, undermining the core advantages of using digital assets for cross-border commerce. For Indian companies interacting with Turkish crypto platforms for permitted activities, the stringent AML/KYC mandates create significant compliance burdens and operational friction, adding layers of complexity to international financial operations.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payment infrastructure built on Bitcoin to streamline cross-border transactions. Its core products, Lightspark Connect and Grid Switch, offer distinct pathways to this network. Lightspark Connect enables businesses to natively access the Lightning Network for instant Bitcoin payments, handling complex node and liquidity management. Grid Switch bridges traditional finance with crypto by connecting domestic real-time payment systems, allowing instant fiat-to-fiat transfers using Bitcoin as a settlement asset without direct user interaction.
These solutions address the high costs and delays of traditional banking. For regulated entities, like those in Turkey facing strict AML/KYC rules, Lightspark provides facilitating tools. Features like audit-ready reporting, flexible key custody, and built-in compliance integrations help businesses meet their obligations. By offering a compliant-ready framework, Lightspark enables institutions to leverage crypto-native payments while adhering to regulatory standards.
To learn how Lightspark is building the future of open and instant global payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
FAQs
How is cryptocurrency taxed in Turkey?
As of late 2024, Turkey has not yet established a specific tax framework for capital gains or income from cryptocurrency trading. Investors should consult with a local tax professional for guidance based on general tax principles until formal regulations are announced.
Is cryptocurrency mining legal in Turkey?
There are currently no specific laws in Turkey that explicitly prohibit or regulate cryptocurrency mining activities. However, miners must still comply with general laws regarding electricity usage and business registration.
What is the future of crypto regulation in Turkey?
Turkish regulators are expected to continue refining the crypto framework, with potential future rules focusing on investor protection and detailed taxation guidelines. The goal is to align with international standards to ensure market stability and security.
Sources
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- Altındaş, Şevki Özgür, et al. "Blockchain & Cryptocurrency Laws & Regulations 2025 | Türkiye." Global Legal Insights, Global Legal Group, 25 Oct. 2024, www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/turkey-turkiye.
- ER&GUN&ER Law Firm. "The Legal Implications of Cryptocurrencies in Turkey: Compliance, Tax & Regulatory Guidance." ER&GUN&ER Law Firm, 9 June 2025, istanbullawyerfirm.com/blog/the-legal-implications-of-cryptocurrencies-in-turkey.
- Güden, Ali, and Doğa Girinti. "Legal Status of Cryptocurrencies in Turkey." Guden Attorneys At Law, guden.av.tr/legal-status-cryptocurrencies-turkey/.
- Kaur, Guneet. "Cryptocurrency laws and regulations in Turkey: An overview." Cointelegraph, 8 Aug. 2025, cointelegraph.com/learn/articles/cryptocurrency-laws-and-regulations-in-turkey.
- Team Sanction Scanner. "Cryptocurrency Regulations in Türkiye." Sanction Scanner, 14 Aug. 2025, www.sanctionscanner.com/blog/cryptocurrency-regulations-in-turkiye-1197.
