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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Turkey has introduced new regulations for the crypto sector with two key communiqués published in the Official Gazette on March 13, 2025.
These regulations, part of the broader amendments to the Capital Markets Law No. 6362, place crypto asset service providers under the strict oversight of the Capital Markets Board (CMB).
The two communiqués, “Communiqué on the Establishment and Operating Principles of Crypto Asset Service Providers” (III-35/B.1) and “Communiqué on the Working Principles and Capital Adequacy of Crypto Asset Service Providers” (III-35/B.2), set forth comprehensive guidelines covering establishment, operations, capital adequacy, and customer protection measures.
These reforms mark Turkey’s most extensive regulatory effort in the crypto space to date. It started in December last year when the authorities announced their new AML rules, which will mandate user information for transactions.
New Turkey Crypto Regulations To Impact Exchanges
The Communiqués introduce a detailed framework governing the establishment and operation of crypto asset service providers.
Under Communiqué III-35/B.1, crypto asset platforms must be structured as joint-stock companies, with all shares registered and issued in cash.
A minimum capital requirement is enforced, ensuring that only financially stable entities can operate.
The regulations also stipulate that platform founders and partners must meet strict financial and reputational criteria, including an absence of bankruptcy history or regulatory violations.
To enhance platform integrity, service providers must establish robust internal audit, internal control, and risk management systems.
Additionally, the document recording systems, technological infrastructure, and independent auditing procedures are now subject to stricter scrutiny.
The new laws also require proof-of-reserve audits, ensuring exchanges hold enough assets to cover customer deposits, thereby minimizing risks associated with insolvency.
Crypto platforms must enter agreements with Board-approved custodians, ensuring that customer funds and assets are held securely.
They must also maintain separate bank accounts for user funds to prevent mismanagement.
A crucial aspect of the reform is listing crypto assets, which now follow stricter approval processes to prevent trading highly volatile or unverified assets.
Additionally, platform executives and key personnel are barred from engaging in activities that might lead to conflicts of interest.
The mandatory risk disclosure forms clearly describe the risks associated with crypto assets, and customer agreements must now be signed before any transactions occur.
Exchanges must also offer comprehensive customer support and dispute resolution mechanisms, significantly improving investor protection.
Capital Adequacy and Security Requirements for Crypto Custodians
Communiqué III-35/B.2 focuses on crypto custodians’ operational security and financial stability.
A significant part of this regulation is the capital adequacy requirement, ensuring that custodians maintain sufficient financial reserves to meet obligations.
Crypto custodians must also comply with international cybersecurity standards, which mandate cold storage solutions to protect assets from cyber threats.
Platforms must maintain multi-signature authentication for asset transfers, significantly reducing the risks of unauthorized withdrawals or hacks.
To prevent systemic risks, custodians must regularly report their financial status and security protocols to the CMB.
They are also subject to routine independent audits, with any discrepancies leading to immediate regulatory action.
While necessary for facilitating transactions, hot wallets must be limited in capacity and insured against losses.
This measure addresses concerns regarding hacking incidents that have previously led to substantial investor losses, like the recent Bybit hack, which became the biggest hack in the history of crypto.
Another major provision is the segregation of customer funds from company assets.
This prevents the misuse of investor funds in cases where the platform faces financial difficulties.
Any service provider failing to meet the minimum capital adequacy requirements will face penalties, including potential suspension or revocation of their license.
Additionally, new anti-money laundering (AML) and know-your-customer (KYC) requirements have been introduced.
Crypto exchanges and custodians must now implement real-time monitoring systems to detect suspicious transactions.
These measures implemented are required to meet the Financial Action Task Force (FATF) recommendations.
At this juncture, it is clear Turkey is now set to regulate the crypto space end-to-end, and it seems to be attracting crypto companies, as Coinbase has since last year signified its intent of entering the country.
