Turkey is entering a new phase in its crypto regulation framework, bringing stricter rules for exchanges and service providers. While crypto trading and holding remain legal, the government aims to increase transparency and investor protection through licensing obligations.
Licensing Becomes Mandatory
Under the proposed regulations, all crypto service providers — including exchanges and custody platforms — will need to obtain official licenses from the Capital Markets Board. This move aims to formalize the industry and align it with international financial standards.
Focus on AML and KYC Compliance
The updated framework introduces tougher Anti-Money Laundering (AML) and Know-Your-Customer (KYC) requirements. Platforms will be required to verify user identities, report suspicious transactions, and implement enhanced monitoring to prevent illicit financial activity.
No Change to Payment Restrictions
Despite the regulatory progress, Turkey maintains its 2021 ban on using cryptocurrencies for payments. The government argues that this restriction protects consumers from volatility and potential fraud while allowing investment activity to continue legally.
Market Impact and Investor Response
Experts believe the new rules will improve trust and attract institutional investors to Turkey’s growing crypto ecosystem. However, smaller exchanges may face challenges meeting licensing costs and compliance obligations, which could lead to consolidation in the market.
