CRYPTO MARKETS IN TURKEY IN LIGHT OF RECENT LEGAL DEVELOPMENTS

The past month of July 2025 has been a particularly dynamic time for the crypto asset service providers (“CASPs”) markets in Turkey, marked by significant regulatory developments. To better understand the developments that took place in the crypto asset service provider markets during July, it is useful to recall the important regulatory steps taken earlier this year in March. In this context, the regulations introduced by the Capital Markets Board of Turkey (“CMB”) published in the Official Gazette dated 13 March 2025 and numbered 32480 represent a major milestone in Turkey’s crypto regulatory landscape.

Specifically, the Communiqué No. III-35/B.1 on the Establishment and Operating Principles of Crypto Asset Service Providers (“Communiqué III-35/B.1”)[1] and the Communiqué No. III-35/B.2 on the Operating Procedures and Principles and Capital Adequacy Requirements for Crypto Asset Service Providers (“Communiqué III-35/B.2”)[2] established the legal framework for licensed operations of Crypto Asset Service Providers and introduced comprehensive obligations.

Communiqué III-35/B.1 sets out in detail the processes related to the establishment, licensing, operation, and termination of CASPs in Turkey. It provides a clearly defined set of legal, operational, and technological obligations for entities intending to offer crypto asset services, with the primary objective of ensuring investor protection, systemic integrity, and financial stability.

• All shares must be registered (non-bearer) shares,
• Shares must be issued in exchange for cash contributions,
• The initial capital must not be less than the amount determined by the Board, provided that it is not below the minimum capital requirement stipulated under the CMB’s capital adequacy regulations for CASPs,
• The entire capital must be fully paid in cash, and the company’s equity capital must not fall below the required minimum. 

In addition, the communiqué sets forth detailed conditions regarding the founders and shareholders of CASPs. It also mandates that platforms intending to offer trading services must include the expression “crypto asset trading platform” in their trade name, while those providing custody services must include “crypto asset custody institution.”

According to Article 7 of Communiqué III-35/B.1, CASPs are also required to use their trade names in all kinds of announcements and advertisements published through print or visual media, as well as in all written correspondence.

Application and Operational Launch Process

Pursuant to Article 8 of Communiqué No. III-35/B.1, the founders of CASPs are required to submit an application to the CMB along with the necessary documentation. The main conditions that must be met in order to commence operations are as follows:

• The minimum capital must be fully paid in cash,
• All necessary technical and system integration tests with the Central Registry Agency (“CRA”) must be completed,
• A bank account must be opened to hold client funds,
• Internal mechanisms must be established, along with a written procedure, to effectively resolve client complaints and objections regarding transactions,
• A price monitoring system must be implemented, with corresponding written procedures. 

According to Article 55 of Communiqué III-35/B.1, platforms that are currently operational and listed in the CMB’s “Active Platforms List”[3] have been granted a deadline of 30.06.2025, to comply with the relevant requirements. Platforms that fail to meet these obligations by that date will be subject to liquidation proceedings.

Meanwhile, Communiqué No. III-35/B.2 outlines the scope of services that operating CASPs may provide, as well as the principles governing their activities, capital adequacy requirements, and operational security standards. This Communiqué serves as a natural continuation and complement to Communiqué III-35/B.1, offering a comprehensive regulatory framework for the establishment, functioning, infrastructure, supervision, and reporting systems of CASPs in Turkey.

        I.           On the Criterias to Be Fulfilled by 30 June 2025

Pursuant to Communiqués No. III-35/B.1 and III-35/B.2, published on 13.03.2025, CASPs were granted until 30.06.2025 to comply with a set of regulatory obligations. The key requirements to be fulfilled by that deadline can be summarized as follows:

• Submission of an Operational License Application – III-35/B.1 – Provisional Article 1(2)
• Obtaining a Reserve Audit Report – III-35/B.1 – Provisional Article 1(2)
• Obtaining an Authorization Certificate – III-35/B.1 – Provisional Article 1(3)
• Compliance with Custody Infrastructure Requirements – III-35/B.1 – Provisional Article 1(1)
• Fulfillment of Capital Adequacy Requirements – III-35/B.1 – Provisional Article 1(1)

The obligations scheduled for the post–30.06.2025 period are as follows:

• By 30.09.2025: entities that applied for an operational license must obtain an independent audit report on their information systems. 

• By 31.10.2025: entities intending to offer custody services must enter into agreements with licensed custodians and complete the required technical integrations.

As of 30.06.2025, platforms that failed to meet the above requirements within the prescribed time frame are now subject to liquidation provisions under Article 1(2) of the Provisional Clause in Communiqué III-35/B.1. Accordingly, entities that appear on the "List of Active Platforms" but failed to fulfill the necessary conditions have been moved into the liquidation process.

As of now:

• The number of platforms listed as Active has dropped to 60,
• The number of platforms listed as Under Liquidation[4] has increased to 45.

     II.          Restrictions Introduced by MASAK General Communiqué (Serial No: 29)

With the General Communiqué No. 29, dated 28.06.2025 (“The Communiqué”), the Financial Crimes Investigation Board (“MASAK”)[7] introduced a set of obligations for CASPs and platforms as defined under Article 3(1) (dd) of Capital Markets Law No. 6362, regarding customer due diligence and anti-money laundering (AML) compliance.

The Communiqué refers extensively to two key regulations: The Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Measures Regulation”)[8], and The Regulation on Compliance Programs for Obligations Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Compliance Regulation”)[9].

In this framework, it outlines detailed compliance requirements for platforms in terms of suspicious transaction monitoring and customer tracking. Key provisions under Article 4 of the Communiqué are as follows:

i)      Transfer Time Restrictions

ii)     

Transaction Limits

A daily limit of USD 3,000 and a monthly limit of USD 50,000 applies to crypto asset withdrawals.

However, if the identity information of the parties to the transfer is fully provided and verified as stipulated in the first paragraph of Article 24/A of the Measures Regulation, these limits may be increased up to twice the standard amount. 

iii)    Transaction Description Requirement

Regardless of the transaction type, platforms are required to obtain a minimum 20-character description from the customer explaining the purpose of each transfer.

The Communiqué also outlines exceptional circumstances under which the time and limit restrictions may not apply. To qualify for such exemptions, platforms must meet the following strict conditions:

• Complete and accurate implementation of customer identification and verification (KYC) obligations,
• Collection of information and documentation on the source of funds,
• Regular acquisition of the customer’s account information from banks or other platforms,
• Clear demonstration that the transaction is conducted for purposes such as liquidity provision, market making, or cross-market arbitrage.

Additionally, platforms must obtain individualized approval from their board of directors for each customer eligible for such exemptions.

Even when an exemption is granted, platforms are required to subject these customers to continuous monitoring and supervision. If it is later determined that the transaction does not align with one of the permitted purposes, the time and limit restrictions must be enforced immediately.

These new requirements are closely linked to international financial transparency standards particularly the Travel Rule recommended by the Financial Action Task Force (FATF)[10]. The Travel Rule mandates that identifying information of both the sender and recipient must be transmitted alongside crypto transfers, with the aim of detecting suspicious activities and preventing money laundering and terrorist financing.

Turkey officially initiated this compliance process with new obligations introduced in a regulation published in the Official Gazette on 25.10.2024[11], which entered into force on 25.02.2025. As part of this regulation, Article 24/A of the Measures Regulation came into effect, imposing the following obligations:

• Mandatory Information Sharing for Transfers Over TRY 15,000:
  CASPs must transmit the sender’s and recipient’s name-surname, wallet address, and a unique transaction identifier for transfers exceeding TRY 15,000. This information must be collected at the initiation of the transaction and shared securely in electronic format.

• Sender Identity Verification:
  CASPs are obligated to verify the sender’s identity. While recipient information must be collected and transmitted, there is no obligation to verify the recipient’s identity, thereby ensuring transaction transparency without burdening platforms with recipient verification.

• Transfers to Self-Hosted Wallets:
  When there is no service provider on the recipient side (e.g., a transfer to the customer’s personal wallet), the platform must collect the recipient’s details from the customer.
  In such cases, the customer must provide the recipient’s name and at least one additional identifying element (e.g., national ID number, date of birth, or address), and the transaction must be processed using this information.

With these new rules, both sender and recipient data are now mandatorily shared in crypto transfers, enhancing transaction transparency.

The MASAK Communiqué dated 28.06.2025 complements this legal framework by clarifying the technical and operational responsibilities of CASPs, further strengthening Turkey’s alignment with international standards.

  III.            Capital Markets Board Bulletin No. 2025/38 Dated 3 July 2025 and Access Restrictions

Through its Weekly Bulletin dated 03.07.2025 and numbered 2025/38[12], the CMB announced that access had been blocked to 46 websites found to be offering unauthorized crypto asset services.

The CMB exercises this authority pursuant to Article 99/A(3) and Article 99(4) of the Capital Markets Law No. 6362[13]. The relevant provisions are as follows:

Article 99/A (3)

The Board may decide to remove content and/or block access to online broadcasts in the following cases. The decision is submitted to the Union of Access Providers for enforcement:

Article 99 (4)

In line with these provisions, the full list of the 46 websites subject to access bans has been published in the CMB’s Bulletin No. 2025/38 and shared with the public[14].

CONCLUSION

Since the beginning of 2025, developments in the crypto space have been rapidly taking shape. July, in particular, has witnessed significant progress in terms of compliance with newly introduced regulations and the implementation of additional obligations. The scope of regulatory frameworks is steadily expanding, and structural compliance processes remain ongoing for crypto asset service providers.

The regulations introduced by the Capital Markets Board and the Financial Crimes Investigation Board  during this period hold strategic importance in terms of aligning Turkey with international organizations such as the FATF. In particular, the implementation of the Travel Rule and the institutionalization of information-sharing obligations indicate that the market is being reshaped around the principles of transparency, auditability, and investor protection.

For platforms seeking to continue operating through this transition, it is of critical importance to not only develop a strong compliance relationship with the new regulations but also to keep their technological and institutional infrastructure continuously up to date.

REFERENCES

1.       Capital Markets Board of Turkey (CMB), Communiqué No. III-35/B.1 on the Principles Regarding the Establishment and Operations of Crypto Asset Service Providers, Official Gazette, 13.03.2025, No: 32480.

https://www.resmigazete.gov.tr/eskiler/2025/03/20250313-5.htm

2.       Capital Markets Board of Turkey (CMB), Communiqué No. III-35/B.2 on the Operating Principles and Capital Adequacy of Crypto Asset Service Providers, Official Gazette, 13.03.2025, No: 32480.

https://www.resmigazete.gov.tr/eskiler/2025/03/20250313-6.htm

3.       Financial Crimes Investigation Board (MASAK), General Communiqué No. 29, 28.06.2025, Official Gazette, No: 32562.

https://www.resmigazete.gov.tr/eskiler/2025/06/20250628-4.htm

4.       Capital Markets Board of Turkey (CMB), Weekly Bulletin No: 2025/38, dated 03.07.2025.

https://spk.gov.tr/data/6866ce978f95db0fc87f806f/2025-38.pdf

5.       Capital Markets Law No. 6362.

https://mevzuat.gov.tr/mevzuat?MevzuatNo=6362&MevzuatTur=1&MevzuatTertip=5

6.       Regulation on Measures for the Prevention of Laundering Proceeds of Crime and Financing of Terrorism.

https://mevzuat.gov.tr/mevzuat?MevzuatNo=200713012&MevzuatTur=21&MevzuatTertip=5

7.       Regulation on the Compliance Program Regarding Obligations for the Prevention of Laundering Proceeds of Crime and Financing of Terrorism.

https://mevzuat.gov.tr/File/GeneratePdf?mevzuatNo=12426&mevzuatTur=KurumVeKurulusYonetmeligi&mevzuatTertip=5

8.       FATF Travel Rule (Recommendation 16), Financial Action Task Force (FATF), https://www.fatf-gafi.org/en/publications/Fatfrecommendations/R16-public-consultation-Feb24.html

9.       List of Active Crypto Asset Service Providers, Capital Markets Board of Turkey.

https://spk.gov.tr/kurumlar/kripto-varlik-hizmet-saglayicilar/faaliyette-bulunanlar-listesi

10.   List of Platforms Under Liquidation, Capital Markets Board of Turkey. https://spk.gov.tr/kurumlar/kripto-varlik-hizmet-saglayicilar/tasfiye-surecinde-olanlar-listesi

11.   Capital Markets Board of Turkey, Bulletin No. 2025/38, dated 3 July 2025. https://spk.gov.tr/data/6866ce978f95db0fc87f806f/2025-38.pdf

12.   Capital Markets Board of Turkey, Bulletin No. 2025/39, dated 17 July 2025.

https://spk.gov.tr/data/687950418f95db2bb06ee756/2025-39.pdf

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