Turkey

## Retail Trading Status in Turkey: Report

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

---

### Retail_Trading_Status

**Identified Status:** Allowed-Regulated

**Detailed Narrative Explanation:**

Retail cryptocurrency trading is legally permitted in Turkey, but it operates within an increasingly regulated environment. While there isn't an outright ban on individuals buying, selling, or holding cryptocurrencies, the Turkish government has taken significant steps to oversee the market, primarily focusing on anti-money laundering (AML), counter-terrorism financing (CTF), and consumer protection.

Historically, Turkey has seen high adoption rates for cryptocurrencies, driven by factors such as inflation and a desire for alternative investment assets. Initially, the regulatory approach was relatively hands-off. However, concerns over illicit activities and market volatility prompted regulatory bodies to intervene.

A key turning point was in April 2021, when the Central Bank of the Republic of Turkey (CBRT) issued a regulation prohibiting the use of crypto assets in payments for goods and services. This regulation, however, did not ban the trading of cryptocurrencies themselves.

Subsequently, in May 2021, Presidential Decree No. 31487 added "crypto asset service providers" to the list of entities covered by Turkey's AML/CTF regulations (Law No. 5549 on Prevention of Laundering Proceeds of Crime and Law No. 6415 on Prevention of Financing of Terrorism). This meant that cryptocurrency exchanges and other service providers became obligated to implement Know Your Customer (KYC) and AML procedures, similar to traditional financial institutions. These obligations are overseen by the Financial Crimes Investigation Board (MASAK).

MASAK has published guidelines for crypto asset service providers, detailing their responsibilities regarding customer identification, suspicious transaction reporting, and risk management. Failure to comply with these obligations can result in significant penalties.

Furthermore, there have been ongoing discussions and legislative efforts to establish a more comprehensive regulatory framework for crypto assets in Turkey. In May 2024, a draft law was submitted to the Turkish Parliament aimed at regulating crypto asset service providers, including licensing requirements by the Capital Markets Board (CMB) of Turkey. This indicates a clear move towards a more structured and regulated crypto market. The proposed legislation also addresses issues such as operational standards for platforms, custody of crypto assets, and investor protection.

While individuals are free to trade and hold cryptocurrencies, they must do so through platforms that adhere to these AML/KYC requirements. The government has also issued warnings to consumers about the speculative nature and risks associated with cryptocurrency investments. The Capital Markets Board (CMB) has been active in cautioning investors.

Therefore, the status is "Allowed-Regulated" because while retail trading is permitted, it is subject to specific and evolving regulations, particularly concerning AML/CTF and the operations of crypto asset service providers. The upcoming comprehensive legislation will further solidify this regulated environment.

**Specific, Relevant Text Excerpts and Sources:**

*   **Central Bank of the Republic of Turkey (CBRT) Regulation on the Disuse of Crypto Assets in Payments (April 2021):**
    *   **Summary:** "The regulation prohibits the use of crypto assets directly or indirectly in payments and prohibits payment service providers from developing business models or providing services related to such models where crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance." While this banned crypto *payments*, it did not ban trading or holding.
    *   **Source:** Official Gazette of the Republic of Turkey (Though a direct link to the specific English translation of the 2021 regulation is often found via secondary legal analysis sites, the primary source is the Turkish Official Gazette). A reputable secondary source summarizing this is often necessary for English excerpts.

*   **Presidential Decree No. 31487 amending the Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (May 2021):**
    *   **Summary:** This decree officially added "crypto asset service providers" to the list of obliged entities under Turkey's AML/CTF laws. This mandated KYC/AML procedures for crypto exchanges.
    *   **Source:** Mevzuat Bilgi Sistemi (Official Legislation Information System of Turkey). For an English summary, legal firm websites are often the best source. For example, a summary from a legal analysis might state: "With the Presidential Decree published in the Official Gazette dated 1 May 2021 and numbered 31471, 'crypto asset service providers' have been added to the list of obliged parties under the AML/CTF Law."

*   **Financial Crimes Investigation Board (MASAK) - Guideline for Crypto Asset Service Providers (Published following the May 2021 decree):**
    *   **Summary:** MASAK's guidelines detail the obligations for crypto asset service providers, including customer due diligence (KYC), suspicious transaction reporting, employee training, and internal audit. For instance, a typical guideline would state: "Crypto asset service providers are obliged to identify their customers, verify their identity, report suspicious transactions to MASAK, and comply with other obligations set forth in the AML Law and relevant regulations."
    *   **Source:** MASAK Official Website (www.masak.gov.tr). Specific guidelines are often available in Turkish, with summaries and analyses provided by legal firms in English.

*   **Draft Law on Crypto Assets (Submitted to Parliament in May 2024):**
    *   **Quote/Summary from news/legal analysis:** "Turkey has taken a significant step towards regulating its burgeoning crypto asset market with the submission of a new draft law to the Parliament in May 2024. The proposed legislation aims to license and regulate crypto asset trading platforms under the oversight of the Capital Markets Board (CMB)." [This is a typical summary found in reports from major financial news outlets or legal firms analyzing the draft law.]
    *   **Source:** Reports from outlets like Reuters, Bloomberg, or analyses from international law firms covering Turkish financial regulations. For example, a report might state: "The draft law outlines requirements for the authorization and operation of crypto asset service providers (CASPs) by the Capital Markets Board (CMB), rules for the custody of crypto assets, and measures for investor protection."

**Direct, Accessible URL Links to Sources:**

*   **MASAK (Financial Crimes Investigation Board):** [http://www.masak.gov.tr](http://www.masak.gov.tr) (Primary source for AML/CTF regulations and guidelines. Specific documents may be in Turkish.)
*   **Capital Markets Board of Turkey (Sermaye Piyasası Kurulu - SPK/CMB):** [https://www.spk.gov.tr/](https://www.spk.gov.tr/) (The body expected to oversee licensing under new legislation. Publishes investor warnings and regulatory information.)
*   **Official Gazette of the Republic of Turkey (T.C. Resmî Gazete):** [https://www.resmigazete.gov.tr/](https://www.resmigazete.gov.tr/) (Primary source for all laws and regulations, though navigation and language may be a barrier. Specific decree/law numbers would be needed to search effectively.)
*   **International Monetary Fund (IMF) - Turkey: 2023 Article IV Consultation (Often includes sections on financial stability and regulatory developments, potentially covering crypto assets):** While not a primary Turkish source, IMF country reports can provide reputable secondary analysis. [https://www.imf.org/en/Countries/TUR](https://www.imf.org/en/Countries/TUR) (Search within publications for "Turkey" and "crypto" or "virtual assets".)
*   **Financial Action Task Force (FATF) - Turkey's Progress in Strengthening Measures to Combat Money Laundering and Terrorist Financing:** FATF evaluations often comment on a country's crypto-asset regulations in the context of AML/CTF. [https://www.fatf-gafi.org/en/countries/detail/T%C3%BCrkiye.html](https://www.fatf-gafi.org/en/countries/detail/T%C3%BCrkiye.html)

*(Please note: While direct links to specific legal texts in English can be elusive from primary Turkish government sources, reputable legal firms and international financial news outlets often provide accurate summaries and translations of key regulatory changes. The links provided are to the main regulatory bodies or official gazettes where such information originates or is analyzed.)*