Summary
- Turkey ranks high in terms of crypto adoption, with a large number of its citizens looking for means to counter long-standing economic problems.
- The authorities have displayed a mixed attitude towards crypto, with regulators taking a different approach to that of the central bank and president.
- Regulation is however, bringing clarity to the sector and introducing greater accountability and protections for users, a shift that is expected to continue.
- For more information about how crypto is being used in countries worldwide, visit our Crypto in Action page.
How is crypto used in Turkey?
Turkey ranks 14th in terms of global crypto adoption with one survey suggesting that more than half the population have bought or owned crypto, a figure that’s forecast to rise to almost one-third during 2026.
Using crypto for payments is banned and yet this has not stopped increasing numbers of the population from buying crypto to hold and invest. Much of this reflects the country’s economic challenges, which have seen Turkey struggle with high levels of inflation and a depreciating fiat, the lira.
The authorities have worked hard since 2023 to improve the country’s financial situation with high interest rates (37% in March 2026) and strong exchange rate policies bringing down inflation to approximately 30% in early 2026. The Middle East crisis has, however, renewed pressure on the country, with Turkey’s heavy reliance on imported oil and gas for its energy needs, raising fresh fears of economic turbulence.
Turkish crypto users have sought long-term wealth accumulation, valuing storage and portfolio diversification. Bitcoin, Ethereum and stablecoins are the most popular choices, and notably trading volume for lira-to-crypto (TRY) pairs has grown exponentially, recording a rise of more than 800% since 2021.
These help avoid currency conversion and in response to their popularity, the larger exchanges offer direct TRY deposit and withdrawal options.
Almost half of Turkey’s investors are aged 31-44, with a further 37% aged 18-30. The ratio of male to female participation is almost equal, although notably there is a large percentage of women of the age of 45 who own crypto.
There are specific requirements for exchanges operating in the country; beyond issues like being transparent about their fee structures and disclosing the potential for risk, they are required to provide Turkish-language customer support. This has led large exchanges like Binance to establish local partnerships.
The authorities’ attitude towards crypto’s development
The authorities have displayed mixed sentiments towards the sector. This can partly be explained by circumstance. In April 2021, two local exchanges – Thodex and Vebitcoin – halted trading, the owner of the former disappearing, leaving numerous local investors with savings lost. The government’s response was harsh.
The Central Bank of Turkey (TCMB) banned crypto’s use for payments on the basis that it was protecting financial stability, and a day later a presidential order added crypto exchanges to the list of firms required to comply with the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
In October the same year, Turkey was, however, placed on the Financial Action Task Force (FATF)’s grey list because of weaknesses in its compliance with global AML and CTF standards.
Just before this, President Recep Tayyip Erdogan declared that: “We have absolutely no intention of embracing cryptocurrencies”, adding that the government would never lend its support to them. He reiterated his position in October 2022, supporting blockchain development but deriding “gambling” on crypto.
In part, this reflects religious views, with the authorities in 2017, declaring that cryptocurrencies were incompatible with Islam. Under President Erdogan, Islamic law has been introduced into new areas of government and society, suggesting that crypto’s development creates tension for the country’s more religiously conservative.
At the same time, however, several of the country’s other authorities have taken steps to legitimize trading activities, and the government is moving towards creating crypto-specific legislation.
To date, this has seen it introduce a formalized regulatory framework, providing both legal clarity for the sector and aligning Turkey’s approach with international best practice, particularly that of the EU.
There are a number of bodies involved in the regulation and oversight of the crypto sector, including:
The Capital Markets Board of Turkey (SPK): oversees cryptocurrency service providers operating within Turkish jurisdiction. It is the primary authority for licensing and supervising crypto asset service providers (CASPs). It also ensures investor protection.
Financial Crimes Investigation Board (MASAK): the main enforcer of AML, know-your-customer (KYC) rules and CTF regulations. It also requires providers to report any suspicious transactions.
The SPK and MASAK have worked to establish a legal framework. As part of this, CASPs must obtain licenses and fully comply with AML and KYC rules.
Central Bank of the Republic of Turkey (TCMB): responsible for monetary policy, and as such, its focus is on maintaining financial stability. It oversees the integration of digital assets into the financial system.
Banking Regulation and Supervision Agency (BRSA): oversees crypto banking activities, including approving banks seeking to offer crypto asset custody services.
The Scientific and Technological Research Council of Türkiye (TÜBİTAK): evaluates the technical and technological infrastructure of CASPs, and audits their technological systems.
How Turkey’s legislation is developing
Mirroring developments in the EU, specifically, the Markets in Crypto-Assets (MiCA) legislation, July 2024 marked the country’s first foray into crypto regulation. Law 7518 (amending the Capital Markets Law) was enacted, providing formal recognition of crypto assets. Key terms were defined and a supervisory structure put in place.
It also created the requirement that all CASPs obtain an operating license from the SPK. They also became ‘obliged entities’ meaning that they became obliged to adhere to AML and KYC protocols.
In December of the same year, the authorities announced new AML regulations for crypto users, coming into effect in February 2025. For any transaction exceeding TRY15,000 it became necessary for users to provide identification information to CASPs.
In March 2025, the SPK published two regulations – Communiqués III-35/B.1 (covering operational requirements) and III-35/B.2 (relating to working principles and capital requirements). These set out additional rules for CASPs relating to their creation, operation, capital requirements, and governance. Overall, the regulations were designed to boost the market’s integrity and stability, and with it, better protect users.
In March 2026, the ruling Justice and Development Party (AK Party) submitted a draft law to parliament in which it proposed tax on crypto income as well as a transaction levy on CASPs. If passed, the amendment to the Income Tax Law and Expenditure Taxes Law would see virtual asset service providers (VASPs) required to collect a 0.003% transaction tax on digital currency trades and transfers. Income from crypto gains (for individuals and companies) would also be subject to a 10% withholding tax.
Additionally, the president would be granted the authority to adjust the withholding tax rate to anything between 0% and 20%.
The vote on the bill is expected to reveal how far the country is willing to regulate the sector, setting the tone for how Turkey addresses crypto and DeFi in coming years.
Timeline of legislative developments
2013
The authorities stated that bitcoin was not electronic money.
2017
The Directorate of Religious Affairs said that bitcoin and other cryptocurrencies were not permissible in Islam.
2021
In April, local exchange, Thodex, halted trading abruptly, with its CEO reportedly fleeing to Albania with $2bn belonging to clients. Shortly after, another local exchange, Vebitcoin, also halted operations.
The same month, the central bank banned crypto for payments and a presidential order added crypto exchanges to the list of firms required to comply with the country’s AML and CTF regulations.
In September, the president announced a “fight” against cryptocurrencies.
The same month, the TCMB launched the Digital Turkish Lira Collaboration Platform.
In October, the FATF added Turkey to its grey list over AML and CTF compliance fears.
2024
In June, the country was removed from the FATF’s grey list reflecting the work it had done to improve its AML and CTF monitoring.
In July, Law 7518 was enacted, providing formal recognition of crypto assets and setting up the requirement that all CASPs obtain an operating license.
2025
In March, the SPK published two regulations, which further clarified the crypto sector’s position.
2026
In March, an amendment to the Income Tax Law and Expenditure Taxes Law was tabled, which if passed, would introduce taxation requirements into the sector.
Outlook
Turkey’s crypto sector is a maturing market, showing the hallmarks of shifting from being high-risk to one that displays greater regulation and oversight. With stricter requirements (particularly on capital), there has been a marked shift away from smaller, local exchanges to larger, global players.
Reflecting the country’s continued economic difficulties, there is unlikely to be any drop off in interest in crypto. This places the onus on the authorities to continue developing and refining the crypto framework. Areas that require further work include user protection as well as more robust taxation guidelines.
The policy thrust continues to be towards bringing Turkey’s legislation and the practices governing the sector in line with international legislation and best practice, particularly harmonizing domestic regulation along the lines of MiCA. There are few indications that this will change.
An interest in taxing the sector points to a desire to encourage greater legitimacy into the sector, while also providing a useful – and growing – revenue stream for an economy facing difficult conditions.
