1. Legal Framework for Crypto Companies in Turkey

1. Legal Framework for Crypto Companies in Turkey

1.1 Introduction

Cryptocurrency and blockchain-based business models have rapidly developed across the globe, including in Turkey. The increasing adoption of cryptocurrencies for investment, payment, and technology purposes has led to a growing number of entrepreneurs seeking to establish crypto-related companies in Turkey. However, the legal landscape for cryptocurrencies and crypto companies in Turkey is unique, involving regulatory ambiguities, licensing requirements, and a combination of strict prohibitions and permissible business models.

This article aims to provide a comprehensive guide on the legal framework, step-by-step incorporation procedures, regulatory requirements, restrictions, and the practical challenges of operating a crypto company in Turkey.

1.2 Definition of Crypto Companies

Crypto companies in Turkey generally refer to legal entities engaged in activities such as:

• Cryptocurrency trading and exchange platforms (“crypto asset service providers”)

• Crypto wallet and custody services

• Blockchain technology development

• Crypto mining and token issuance (ICOs, STOs)

• Crypto payment systems (subject to restrictions)

• Consultancy and software services related to blockchain

Note: The Turkish legal definition of a “crypto asset” was first established in April 2021 by the Central Bank’s regulation.

1.3 Main Legislation

Key pieces of legislation and regulatory guidelines include:

• Law No. 5549 on Prevention of Laundering Proceeds of Crime (AMLA)

• The Regulation on the Non-Use of Crypto Assets in Payments (Official Gazette: 16 April 2021)

• Communiqués and guidelines by the Financial Crimes Investigation Board (MASAK)

• The Turkish Commercial Code (TCC)

• The Capital Markets Law (for token offerings and investments)

• Draft legislation and public authority press releases

While Turkey has not yet enacted a comprehensive Crypto Law, existing regulations and circulars provide the backbone for compliance.

1.4 Key Authorities

• Ministry of Treasury and Finance

• Financial Crimes Investigation Board (MASAK)

• Central Bank of the Republic of Turkey (CBRT)

• Capital Markets Board (SPK)

• Banking Regulation and Supervision Agency (BDDK)

• Information Technologies and Communication Authority (BTK)