Crypto assets have gained substantial popularity among Turkish investors, mirroring the global trend, and this interest continues to expand progressively. Despite their increasing adoption, Turkish regulatory authorities have traditionally maintained a cautious stance toward crypto assets due to the associated risks of money laundering, financial misconduct, and the absence of comprehensive consumer protection mechanisms. Nevertheless, the growing engagement with crypto assets has underscored the necessity of instituting a coherent and structured legal framework.
Within this context, while preliminary regulatory measures were introduced (such as prohibition on the use of crypto assets in payment transactions and obligations for crypto asset service providers to comply with anti-money laundering legislation) the principal regulatory foundation governing crypto assets in Türkiye was established through the Capital Markets Law. Specifically, on 2 July 2024, substantial amendments to the Capital Markets Law (Law No. 6362) (published in the Official Gazette dated 30 December 2012, No. 28513) (the Capital Markets Law) were made, incorporating comprehensive provisions regulating crypto assets and formally vesting the Capital Markets Board (the CMB) with the authority to supervise and regulate the activities of crypto asset service providers. Although the Capital Markets Law does not provide an explicit regulatory framework for crypto assets possessing the characteristics of electronic money, Article 35B(7) preserves the duties and authorities of institutions and organizations arising from other legislation concerning crypto assets. In line with this provision, the CMB’s Decision No. i-SPK.35.B.1 (dated 19 September 2024, No. 1484) emphasizes that the amendments to the Capital Markets Law do not affect existing obligations or sanctions under current legislation, and the use of crypto assets as an instrument does not create any legal exceptions.
Consequently, activities falling within the regulatory purview of other institutions must continue to comply with the applicable regulations regardless of whether crypto assets are utilized, and non-compliant crypto assets cannot be listed on trading platforms. Considering that the Central Bank of the Republic of Turkey (the “CBRT”) functions as the principal regulator in the field of payment services, it is generally assessed that the authority to regulate crypto assets with the characteristics of electronic money resides with the CBRT, notwithstanding the absence of an explicit provision in the Capital Markets Law. Furthermore, according to Article 5(9) of the Regulation on Payment Services, Electronic Money Issuance, and Payment Service Providers (published in the Official Gazette dated 1 December 2021, No. 31676) (the “Regulation”), intangible assets that are issued exclusively in exchange for an equivalent amount of fiat money, created virtually, and distributed through digital networks shall be deemed electronic money, provided that they are issued in return for funds accepted by the issuing institution, stored electronically, used for the execution of payment transactions, and accepted as a means of payment not only by the issuing institution but also by natural and legal persons other than the issuer. It should be noted that the conditions enumerated under items (i), (ii), (iii), and (iv) above parallel the definition of electronic money set forth in Article 3(1)(i) of the Regulation; in other words, an asset that satisfies these conditions should be deemed to possess the characteristics of electronic money. Article 5(9) of the Regulation also stipulates that the manner in which secondary regulations shall apply to intangible assets qualifying as electronic money, as well as other procedural and substantive rules pertaining to such electronic money, shall be determined by a regulation to be issued by the CBRT. Although this article implicitly recognizes the concept of crypto assets with electronic money characteristics and suggests that more detailed regulations may follow in the future, no specific regulatory enactments have been issued by the CBRT since the publication of the Regulation in December 2021.
By contrast, European Union legislation explicitly addresses crypto assets possessing electronic money characteristics. In particular, the Markets in Crypto-Assets Regulation (“MiCA”) constitutes a comprehensive legislative framework regulating crypto assets and related services, which entered into force on 29 June 2023, with provisions concerning issuers of e-money tokens and asset-referenced tokens becoming effective on 30 June 2024. MiCA defines “electronic money tokens” as a type of crypto asset that purports to maintain a stable value by referencing the value of a single official currency. The clarification of the legal status of electronic money-type crypto assets in Turkey, akin to the EU framework, remains a key expectation of industry stakeholders. Against this backdrop, establishing comprehensive regulatory frameworks for crypto assets that possess the characteristics of electronic money is considered crucial, encompassing both the explicit designation of the CBRT as the competent regulatory authority and the detailed clarification of how secondary legislation related to payment services applies to such assets.
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