Turkey has taken a significant step toward regulating its cryptocurrency sector, introducing new rules for crypto asset service providers (CASPs), including exchanges, custodians, and wallet service providers. The Turkish Capital Markets Board (CMB) now holds full regulatory oversight of CASP licensing, operations, and compliance, bringing the country’s crypto framework in line with global standards.
On March 13, the CMB released two key regulatory documents outlining the licensing, operational, and compliance requirements for CASPs. The framework establishes specific conditions for companies operating in Turkey’s crypto market, ensuring a higher level of investor protection and financial security.
Among the primary provisions are:
- Minimum capital requirements: Crypto exchanges must maintain a minimum capital of $4.1 million, while custodians must hold at least $13.7 million.
- Strict compliance obligations: CASPs are required to implement advanced compliance infrastructure, including risk management teams and price monitoring systems to detect suspicious activity.
- Enhanced reporting standards: Service providers must report detailed operational data to the CMB, including records of all transactions, canceled and unexecuted orders.
- Anti-Money Laundering (AML) enhancements: CASPs must maintain extensive transaction records to strengthen Turkey’s crypto AML standards, which were initially introduced in December 2024.
Prohibition on Derivative Crypto Transactions
A key aspect of the new framework is the prohibition of derivative transactions involving crypto assets. This move aligns with Turkey’s broader regulatory approach to mitigating financial risks associated with high-volatility assets.
However, the regulations allow exchanges to conduct initial coin offerings (ICOs), provided they thoroughly vet smart contracts and ensure compliance with listing requirements. Notably, while the framework does not explicitly define security tokens, their issuance remains permitted under existing laws.
Turkey’s updated crypto regulations align with international frameworks, drawing influence from Europe’s Markets in Crypto-Assets Regulation (MiCA) and policies set by the U.S. Securities and Exchange Commission (SEC). These regulations aim to create a structured and transparent environment for crypto-related businesses while addressing potential financial risks.
Furthermore, Turkey maintains its stance on prohibiting crypto payments for goods and services, in accordance with Central Bank regulations.
The new regulatory framework has different implementation phases, with most provisions taking effect by June 30, 2025, and full enforcement expected by the end of the year.
This regulatory shift marks a critical moment for Turkey’s crypto industry, offering greater oversight, investor protection, and financial transparency. As the country moves forward with its regulations, compliance and adaptation will be crucial for crypto businesses operating within its jurisdiction.
HODL Team
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