Turkey has emerged as a major player in the global crypto landscape, driven by economic instability, a tech-savvy youth population, and growing demand for financial alternatives. As crypto adoption surges, the Turkish government has responded with a wave of regulatory reforms—particularly in 2024—to strengthen oversight, combat fraud, and align with international anti-money laundering (AML) standards.
This guide explores the current state of cryptocurrency regulations in Turkey, examines past vulnerabilities exposed by high-profile scams like Thodex, and unpacks the comprehensive legal framework introduced in 2024 to bring legitimacy and stability to the sector.
The Rise of Crypto Adoption in Turkey
Turkey’s rapid embrace of digital assets stems from a confluence of socioeconomic factors. Soaring inflation and the depreciation of the Turkish lira have eroded public trust in traditional financial systems. In response, many citizens have turned to cryptocurrencies as a hedge against economic uncertainty.
Additionally, a young, digitally native population has fueled widespread interest in blockchain technology and decentralized finance (DeFi). This demographic is more open to alternative investment vehicles, contributing to Turkey's position among the top countries for crypto transaction volume.
Despite this enthusiasm, the absence of robust regulation created fertile ground for fraud—most notably the collapse of Thodex.
The Thodex Scandal: A Regulatory Wake-Up Call
Thodex was once Turkey’s largest cryptocurrency exchange, boasting around 400,000 users. In April 2021, it abruptly halted all withdrawals and trading activities. The platform’s 27-year-old CEO, Faruk Fatih Özer, fled the country, allegedly absconding with approximately $2 billion in investor funds.
The incident sent shockwaves through the Turkish financial system. Authorities issued an international arrest warrant, leading to Özer’s capture in Albania in September 2023. He was later sentenced to 11,196 years in prison—a symbolic punishment reflecting the severity of his crimes.
The Thodex scandal underscored critical gaps in oversight and consumer protection within Turkey’s crypto ecosystem. It catalyzed urgent legislative action aimed at preventing future crises and restoring public confidence.
👉 Discover how secure crypto platforms are adapting to new global compliance standards.
Key Cryptocurrency Regulations in Turkey
In response to rising risks, Turkish regulators have implemented a series of measures targeting transparency, accountability, and financial integrity.
Ban on Crypto Payments (2021)
In April 2021, the Central Bank of the Republic of Turkey (CBRT) issued a decree prohibiting the use of cryptocurrencies as payment instruments. Under this rule:
“Crypto assets are defined as intangible assets created virtually using distributed ledger technology or similar systems, distributed over digital networks, and not classified as currency, electronic money, securities, or other capital market instruments.”
The ban also restricts electronic money institutions from offering services that facilitate crypto-based transactions. The primary concern? Anonymity. Regulators fear untraceable payments could enable money laundering, terrorist financing, and other illicit activities.
While individuals can still hold and trade crypto assets, they cannot legally use them to purchase goods or services.
Expansion of Anti-Money Laundering Rules (2021)
Turkey has long had AML frameworks in place under Law No. 5549. In May 2021, these were extended to cover Crypto Asset Service Providers (CASPs), classifying them as obligated entities under the country’s financial crime prevention regime.
This means CASPs must now comply with customer due diligence (CDD), suspicious transaction reporting, and record-keeping requirements enforced by MASAK—the Financial Crimes Investigation Board.
2024 Regulatory Overhaul: A New Era for Crypto in Turkey
The year 2024 marked a turning point with the introduction of comprehensive legislation designed to formalize and stabilize the crypto market.
Crypto Assets Law (July 2024)
On July 2, 2024, Turkey enacted sweeping amendments to its Capital Markets Law No. 6362, establishing a formal licensing regime for all CASPs operating in the country.
Licensing Requirements for CASPs
Under the new law, any entity providing crypto services—including exchanges, custodians, and wallet providers—must obtain a license from the Capital Markets Board (CMB). A transition period was granted, requiring existing operators to apply by August 2, 2024, or face penalties.
This deadline prompted major platforms like Binance to either apply for compliance or scale back operations. According to CMB reports, over 75 firms, including Coinbase and Bitfinex, submitted applications to operate legally in Turkey.
Binance also reduced its local marketing efforts and removed certain Turkish-language features from its app—a clear signal of its commitment to regulatory alignment.
Transaction Volume Growth
Turkey’s crypto trading volume reached $349 billion in H1 2023**, averaging $700–$750 billion annually by year-end. Chainalysis projects **$170 billion in transaction volume for 2024, representing over 100% year-on-year growth.
These figures highlight Turkey’s strategic importance as a high-volume market—and why global players are rushing to comply.
Enhanced Compliance Obligations for CASPs
To prevent another Thodex-style collapse, regulators imposed strict ownership and governance rules:
- No individual with a history of financial crime or bankruptcy may hold significant influence.
- Executives cannot be associated with revoked financial institutions.
- Complex corporate structures are prohibited; beneficial owners must be clearly identifiable.
- All CASPs must undergo independent audits and submit annual reports.
These measures aim to ensure transparency and deter bad actors from exploiting regulatory loopholes.
Role of TÜBİTAK in Crypto Oversight
The Scientific and Technological Research Council of Turkey (TÜBİTAK) now plays a key role in monitoring compliance. Its responsibilities include:
- Setting audit standards for CASPs.
- Receiving annual fees—1% of revenue—from each licensed provider (shared with the CMB).
This dual-fee structure ensures sustained funding for regulatory oversight while incentivizing technological rigor.
👉 See how leading exchanges are meeting strict global compliance benchmarks today.
Why Is Turkey a Strategic Crypto Market?
Turkey’s economic challenges have inadvertently made it a hotspot for digital asset adoption. With inflation exceeding 60% in recent years and the lira losing significant value, citizens are seeking reliable stores of value outside traditional banking.
This trend mirrors developments in countries like Argentina and Brazil—where crypto adoption has surged amid economic instability. Like Latin America, Turkey represents a fertile ground for compliant platforms that offer fast, secure onboarding and reliable transaction infrastructure.
For businesses eyeing expansion into emerging markets, Turkey offers both opportunity and complexity—demanding agile compliance strategies tailored to local laws.
AML and KYC Compliance for Crypto Platforms
To operate legally in Turkey, CASPs must implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. These include:
- Identity verification (IDV)
- Customer due diligence (CDD)
- Ongoing transaction monitoring
- Compliance with the FATF Travel Rule—requiring sharing of sender and recipient data for cross-border transfers
Failure to meet these standards can result in fines, license revocation, or criminal liability.
Core Keywords:
- Turkish cryptocurrency regulations
- Crypto licensing in Turkey
- CASP compliance
- Thodex scandal
- AML for crypto
- KYC requirements
- Capital Markets Board Turkey
- Crypto payment ban
Frequently Asked Questions (FAQ)
Q: Can I use cryptocurrency to pay for goods in Turkey?
A: No. Since April 2021, Turkish law prohibits the use of crypto assets as payment for goods or services.
Q: Do crypto exchanges need a license in Turkey?
A: Yes. All Crypto Asset Service Providers must obtain a license from the Capital Markets Board (CMB) by meeting strict regulatory requirements.
Q: What happened to Thodex?
A: Thodex collapsed in 2021 when its CEO fled with investor funds. He was later arrested and sentenced to over 11,000 years in prison.
Q: Is crypto legal in Turkey?
A: Yes—owning and trading cryptocurrencies is legal. However, using them as payment is banned, and service providers must comply with licensing and AML rules.
Q: How does Turkey regulate crypto exchanges?
A: Through mandatory licensing, regular audits, transparent ownership structures, and adherence to AML/KYC protocols overseen by the CMB and MASAK.
Q: What is the FATF Travel Rule’s impact on Turkish crypto firms?
A: CASPs must collect and share identifying information for transactions above a certain threshold—aligning Turkey with global AML standards.
👉 Learn how compliant platforms are securing their global operations efficiently.