Cryptocurrency Crimes and Their Place in Turkish Law

Cryptocurrencies, with their decentralized, digital, and encrypted structure, have revolutionized the financial world in recent years and have rapidly spread, but have also brought with them many problems. With the rapid proliferation of cryptocurrencies, crimes associated with them have also increased. The Turkish legal system has taken steps to regulate this phenomenon and has developed regulations concerning crimes committed with cryptocurrencies. These regulations have primarily been implemented through MASAK (Financial Crimes Investigation Board), SPK (Capital Markets Board), and the Turkish Penal Code.

1. Cryptocurrency Crimes Regulated Under the Turkish Penal Code

• Fraud (Turkish Penal Code Articles 157-158)

The most common type of cryptocurrency crime is fraud. Fraud can be carried out in various ways:

Phishing and Fake Websites: Scammers attempt to steal users' information by creating fake websites of well-known cryptocurrency exchanges.

Ponzi and Pyramid Schemes: These operate on the principle of a Ponzi scheme. New investors' money is used to pay existing investors. At some point, the system collapses, and investors lose their money.

Fake Coin and Project Sales: This refers to the marketing and sale of non-existent or worthless cryptocurrencies with the promise of future appreciation.

Social Engineering: Scammers gain people's trust by asking them to provide key information or send money to their wallets.

Malware: Computers and phones are infected with malicious software to steal people's crypto assets.

Sweepstakes and Gift Fraud: Fraudulent sweepstakes are organized using the names of famous individuals or organizations, and people are asked for a certain amount of cryptocurrency under the guise of promising gifts.

• Money Laundering (Turkish Penal Code Article 282)

Because cryptocurrencies offer a high degree of anonymity, money laundering becomes easier. Laundering illegally obtained income through cryptocurrencies is regulated as a crime under Article 282 of the Turkish Penal Code.

• Interference with Information Systems and Theft of Assets (Turkish Penal Code Articles 244-245)

Unauthorized access to, alteration of information, or rendering inaccessible to cryptocurrency wallets/exchanges falls under the category of cybercrime and is regulated in the Turkish Penal Code as unauthorized entry into information systems. Cryptocurrencies are considered theft when accessed without the owner's permission.

2. MASAK (Financial Crimes Investigation Board) and Regulations Regarding Cryptocurrency Transactions

MASAK has imposed certain specific obligations on cryptocurrency service providers:

• Identity verification requirement
• Report a suspicious transaction
• Data retention obligation

Failure to comply with these obligations will result in administrative sanctions and, if necessary, criminal liability for non-compliant service providers in accordance with Law No. 5549 on the Prevention of Money Laundering.

3. Illegal Gambling and Terrorism Financing with Cryptocurrency 

Because cryptocurrencies are more difficult to trace and can operate outside of centralized authorities, they are an attractive option for financing terrorist organizations. These platforms can be misused to finance terrorism. Such transactions include:

• Illegal betting is a crime under Law No. 7258
• Under Law No. 6415 on the Prevention of Financing Terrorism, this is considered a crime of financing terrorism.

4. The Capital Markets Board (SPK) and the Legal Status of Crypto Assets 

Although cryptocurrencies have not yet been granted "security" status, the Capital Markets Board (SPK) has stated that it may consider some digital assets as capital market instruments. Accordingly, misleading statements or unauthorized issuances could constitute a violation of the Capital Markets Law No. 6362.

While the cryptocurrency market offers high return potential, it also carries significant risks. Before investing, it is crucial to find trustworthy sites, conduct thorough research, meticulously implement personal security measures, and be aware of fraudulent methods.

While there is still no definitive legal boundary regarding cryptocurrencies, increasing regulations are being introduced. More comprehensive and technically advanced crypto asset legislation is expected to come into effect in the future.

In my opinion, those wishing to enter the cryptocurrency market should conduct thorough research and ensure their security. Legislators should also create comprehensive legislation and regulations specifically for crypto assets to ensure individuals can conduct their transactions safely.