Cryptocurrency Regulations in Türkiye

Cryptocurrency adoption has been increasing steadily all over the world, and this is also the case in Turkey. Although cryptocurrencies are now accepted as digital assets in Turkey, their use as a form of payment is still limited. This balanced approach blends cautious regulation with gradual adoption. 

This blog provides a thorough overview of Turkey's cryptocurrency laws as of 2025. You will learn about its legal status, the functions of regulatory agencies, compliance requirements, and the ways in which cryptocurrency companies can guarantee compliance with regional laws.

Is Cryptocurrency Legal in Türkiye in 2025?

As of 2025, it is legal to purchase, sell, and hold cryptocurrency in Turkey. Cryptocurrencies, however, are not regarded as legal tender in Türkiye, they can’t be used to purchase goods or services. Cryptocurrencies like Bitcoin and Ethereum, on the other hand, are formally classified as digital assets and are therefore governed by a set of regulations and compliance standards that are monitored by several government agencies.

Key Points of Cryptocurrency Legality

• It is completely legal in Turkey to own or hold cryptocurrency. There are no limitations on the purchase, sale, or holding of cryptocurrencies by individuals as part of their personal investments. Using digital wallets for storage is part of this.
• Trading on exchanges is legal as long as the exchange abides by the rules established by the Financial Crimes Investigation Board, or MASAK (Mali Suçları Araştırma Kurulu). To function within the legal framework, exchanges must adhere to stringent know-your-customer (KYC) and anti-money laundering (AML) regulations. 
• Since April 2021, the Türkiye Cumhuriyet Merkez Bankası (TCMB) has prohibited the use of cryptocurrency for payments. 
• Initial Coin Offerings (ICOs) are currently unregulated, which means that no particular laws apply to them. Nevertheless, they might be subject to case-specific supervision by the Sermaye Piyasası Kurulu (SPK).
• Running a Crypto Exchange is completely permitted by Turkish law, as long as the exchange is registered as a Virtual Asset Service Provider (VASP) and conforms with MASAK's rules. 

While providing oversight to reduce risks, this two-tier regulatory framework gives people and companies significant opportunities to participate in cryptocurrency activities.

Key Regulatory Bodies Governing Cryptocurrency in Türkiye

Several government agencies oversee the cryptocurrency ecosystem in Turkey, each of which focuses on a different facet of cryptocurrency-related activity:

MASAK (Mali Suçları Araştırma Kurulu) 

The Financial Crimes Investigation Board of Turkey, or MASAK, is responsible for implementing anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. By monitoring Virtual Asset Service Providers (VASPs) to make sure they adhere to strict Know Your Customer (KYC) regulations, it plays a crucial part in regulating the cryptocurrency market. MASAK seeks to stop illegal activity and improve transparency in the ecosystem of digital assets through frequent audits and enforcement actions.

Türkiye Cumhuriyet Merkez Bankası (TCMB) 

Under rules put in place in 2021, the Central Bank of Türkiye, or TCMB, has taken a strong stand against cryptocurrencies by outlawing their use as a form of payment. This choice was made in order to address worries about consumer protection and possible threats to financial stability. Although cryptocurrencies cannot be used directly for payments, they are still allowed as trading and investment tools, giving digital assets in Turkey's financial system a controlled but constrained use case.

Sermaye Piyasası Kurulu (SPK) 

A thorough regulatory framework for initial coin offerings (ICOs) and token offerings has not yet been put into place by the Capital Markets Board of Türkiye, SPK. It may, however, exercise supervision in some circumstances to bring these activities into compliance with current securities laws, especially if a token or offering demonstrates traits of a security. A certain amount of investor protection is offered by the SPK's case-by-case methodology, which also allows for innovation in the expanding cryptocurrency market.

Gelir İdaresi Başkanlığı (GİB)

Although there is no specific cryptocurrency tax law in Turkey, GİB, the country's Revenue Administration, is in charge of taxing activities involving cryptocurrencies under the general income tax regulations. Cryptocurrency profits, like those from trading or mining, are taxable as part of the total taxable income of an individual or organisation. Although there is some ambiguity due to the lack of specific crypto tax regulations, taxpayers are expected to accurately report their crypto-related activities in order to avoid penalties.

Regulations for Virtual Asset Service Providers (VASPs)

Law No. 5549 has officially recognised VASPs as "yükümlü" (obliged entities) since 2021. Over-the-counter (OTC) brokers, custodial wallet providers, and centralised exchanges doing business in Turkey are subject to a number of compliance requirements as a result of this classification.

VASP Obligations: 

Ensure that Turkey complies with global cryptocurrency guidelines established by the Financial Action Task Force (FATF).

Customer Identification and KYC 

To confirm users' identities, all Virtual Asset Service Providers (VASPs) are required to put in place thorough Know Your Customer (KYC) procedures. This entails obtaining and confirming official identification documents, like national IDs or passports, and making sure all user data is correct and current. These steps are meant to guarantee accountability and stop fraud.

Transaction Monitoring and Reporting 

VASPs must keep a careful eye on transactions in order to identify and report any questionable activity. The Financial Crimes Investigation Board (MASAK) must receive reports of suspicious activity (ŞİB), with an emphasis on transactions that are out of the ordinary or that total more than ₺75,000. Finding possible money laundering or terrorist financing activities requires this procedure. 

Record-Keeping 

VASPs must keep thorough records of every transaction for at least eight years. Transaction histories, client identification information, and any pertinent correspondence are all included in this. To ensure accountability and transparency, these documents must be easily available for regulatory audits or inspections.

AML Audits 

To make sure VASPs completely adhere to the pertinent laws, periodic audits of the Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) policies are carried out. 

VASPs support a more transparent and safe financial ecosystem by abiding by these guidelines.

Cryptocurrency Taxation in Türkiye

Despite the lack of a formal cryptocurrency tax law in Turkey, cryptocurrency income is taxable under general income laws. For people and companies involved in cryptocurrency trading, the absence of clear tax regulations creates complications.

Key Taxation Considerations

• Income Tax 

Under Turkey's general income tax laws, profits from cryptocurrency trading are taxable as personal income. Profits from the purchase and sale of cryptocurrencies must therefore be reported as taxable income by the individual.

• Commercial Income 

Frequent cryptocurrency trading or managing large-scale transactions may be considered commercial income rather than personal income for certain people or organisations. 

• VAT 

There are currently no explicit Value Added Tax (VAT) laws in Turkey that particularly address cryptocurrency transactions. However, new VAT regulations for crypto-related activities may soon be introduced thanks to draft legislation that is presently being reviewed. 

In order to avoid financial penalties, taxpayers must accurately report to the GİB any gains related to cryptocurrencies.

FATF Evaluation of Türkiye’s Crypto Oversight

The international community has taken note of Turkey's efforts to regulate cryptocurrencies. The nation has made considerable efforts to fortify its regulatory framework since it was added to the Financial Action Task Force's (FATF) Grey List in 2021 because of oversight shortcomings in the cryptocurrency industry.

FATF’s Observations (2025)

• Improved Compliance 

Significant progress has been made by Turkey in enhancing adherence to international anti-money laundering (AML) regulations. The nation was recognised in a follow-up report by the Financial Action Task Force (FATF) in large part due to improved Virtual Asset Service Provider (VASP) audits and updated Know Your Customer (KYC) regulations implemented in 2023–2024. These initiatives show Turkey's commitment to enhancing its regulatory framework and conforming to global best practices. 

• Enforcement Progress 

Türkiye's Financial Crimes Investigation Board (MASAK) has fined ₺85 million for AML violations, a blatant indication of its dedication to fighting financial crimes.  It is anticipated that ongoing advancements in regulatory enforcement will make it easier for Turkey to be taken off the Grey List soon.

Common Risks and Challenges

The Turkish cryptocurrency ecosystem still faces a number of obstacles in spite of its progress:

• Foreign Exchange Use 

People frequently use foreign exchanges to evade local oversight, which makes enforcement efforts more difficult.

• Licencing Ambiguity 

There is no official licensing framework for cryptocurrency exchanges in Turkey, which could pose operational risks.

• Increasing Enforcement Actions 

Investigations into suspicious activity and heavy fines have become MASAK's main priorities.

Is Türkiye Crypto-Cautious or Crypto-Friendly?

The best way to characterise Turkey's approach to regulating cryptocurrencies is as a careful balancing act between encouraging innovation and upholding financial integrity. Although cryptocurrency trading and ownership are completely legal, the nation's cautious approach is highlighted by limitations on payment methods and unclear regulations in some areas.

Türkiye's Crypto-Friendliness Scorecard (2025)

Because of inflation, currency devaluation, and growing public awareness of digital assets, Turkey's cryptocurrency market is still very active. Although cryptocurrency is not accepted as legal tender, it is legal to trade, and since 2021, MASAK has strengthened its regulatory oversight. Although cryptocurrency ownership and exchange activities are permitted, the Central Bank (TCMB) forbids their use for payments. Today, Turkey is regarded as "crypto-curious with regulatory caution."

Overall Crypto-Friendliness Rating: 6.4 / 10

(Growing user adoption and AML clarity, but lacking in tax & institutional support.)

Top Traded Cryptocurrencies in Türkiye (2025)

The adoption of cryptocurrencies in Turkey is fuelled by speculative interest, savings protection, and currency volatility. According to P2P usage and local exchange volume, these are the most traded digital assets:

How Sanction Scanner Supports Cryptocurrency Compliance

Sanction Scanner offers state-of-the-art tools to make it easier for Turkish businesses and VASPs to comply with regulatory requirements. 

Key Features 

• Transaction Monitoring In Real Time 

Instantaneously monitor wallet-to-wallet transactions to guarantee adherence. 

• Automated ŞİB Reporting 

Makes it easier to report suspicious activity to MASAK. 

• Screening of Watchlists 

Check users against lists of local and international sanctions. 

Leveraging compliance tools is crucial for cryptocurrency businesses operating in Turkey in order to comply with MASAK regulations and maintain their operations.