Turkiye’s New Licensing Regime for CASPs: Navigating the Path Toward Regulatory Certainty

Turkiye’s New Licensing Regime for Crypto Asset Service Providers: Navigating the Path Toward Regulatory Certainty

In a major leap toward the institutionalization of digital asset markets, Turkiye has unveiled a long-anticipated regulatory framework governing crypto asset service providers (CASPs). Published by the Capital Markets Board of Turkiye (CMB) in early 2025, the new framework introduces clear-cut licensing requirements, financial thresholds, operational standards, and custody obligations that are expected to reshape the Turkish crypto ecosystem.

This move comes amid the global wave of crypto regulation, particularly in light of the EU’s Markets in Crypto-Assets Regulation (MiCA) and the Financial Action Task Force’s (FATF) updated guidelines on virtual asset service providers (VASPs). Turkiye’s regulatory pivot signifies not only an effort to ensure investor protection and financial stability but also an alignment with international expectations to combat money laundering and terrorism financing risks within crypto markets.

Background: Why Now?

Despite significant user adoption and high trading volumes, the Turkish crypto sector has until recently operated in a regulatory gray zone. While some general principles under the Turkish Commercial Code, Law No. 5549 (on the Prevention of Laundering Proceeds of Crime), and Law No. 6493 (on Payment Services and Electronic Money Institutions) applied indirectly, there was no specific licensing scheme for crypto trading platforms or custodians. This absence of legal clarity led to operational ambiguity for both domestic and foreign actors.

The Turkish Grand National Assembly’s recent legislative reforms — backed by the Treasury and Finance Ministry and the Central Bank — have aimed to close this gap. The new CASP regime, structured through Communiqués III-35/B.1 and III-35/B.2 issued by the CMB, now establishes a dedicated compliance path for crypto market participants.

Key Features of the New Regime

1. Licensing and Supervision

All entities intending to offer crypto asset trading, custody, intermediation, portfolio management, or advisory services are now required to obtain a CASP license from the CMB. Unlicensed entities are explicitly prohibited from continuing operations after the transitional period.

Applicants must submit detailed documentation, including corporate governance structures, information security protocols, business continuity plans, and financial statements. Moreover, the CMB retains broad discretionary powers to reject applications that do not meet the necessary prudential or transparency criteria.

2. Minimum Capital Requirements

The framework sets substantial capital thresholds:

• • TRY 150 million for trading platforms;
  • TRY 500 million for custody service providers.

These figures far exceed the capital requirements under Law No. 6493 for electronic money institutions, underlining the systemic importance and higher operational risks associated with crypto markets. The capital must be paid in full and maintained continuously.

3. Custody Standards and Segregation

Custody of crypto assets is strictly limited to:

• • Turkish banks authorized by the Banking Regulation and Supervision Agency (BRSA), or
  • Specialized institutions licensed by the CMB under the new communiqués.

Importantly, customer assets must be segregated from the service provider’s own balance sheet. In addition, custody institutions are required to integrate their systems with the Central Securities Depository of Turkiye (Merkezi Kayıt Kuruluşu – MKK), to ensure transparency and traceability of crypto asset holdings and related customer information.4. AML/KYC Obligations

All licensed CASPs must comply with Law No. 5549 and its related regulations. This includes mandatory identity verification procedures, ongoing transaction monitoring, and suspicious activity reporting. Cross-border transactions are subject to enhanced due diligence, especially where counterparties are located in jurisdictions listed as “high-risk” by the FATF.

5. Foreign CASPs and Reverse Solicitation Rule

The regulation introduces a clear boundary for foreign-based CASPs. Unless authorized by the CMB, such platforms are not permitted to offer services directly or indirectly to Turkish residents. However, the “reverse solicitation” principle allows services to be rendered if explicitly initiated by the client without any marketing, advertisement, or outreach by the foreign CASP.

Compliance Timeline and Transition Period

The legislation sets a transition period ending on June 30, 2025, for currently operating platforms to regularize their status. By this date, they must:

• • Meet capital adequacy requirements;
  • Align their custody arrangements;
  • Apply for a CASP license from the CMB.

Those that fail to comply are expected to cease operations and may face administrative fines or criminal sanctions. As of May 2025, several large local platforms have already begun their licensing procedures, and foreign operators are reassessing their business models to comply with the reverse solicitation rules.

Challenges Ahead

While the new framework brings long-awaited legal certainty, several challenges remain. One of the most pressing is the integration of blockchain-based business models — such as DeFi protocols or decentralized exchanges — within a centralized regulatory regime. Moreover, tax treatment of crypto asset gains, consumer protection measures, and cross-border enforcement mechanisms are yet to be clarified.

Additionally, given the global nature of crypto markets, Turkiye’s model must remain agile to respond to future changes in FATF recommendations, the rollout of MiCA across the EU, and potential CBDC developments such as the Digital Turkish Lira project.

Conclusion

Turkiye’s new CASP licensing regime marks a pivotal moment in its financial regulatory evolution. By creating a structured compliance path for crypto businesses, Turkish authorities signal their willingness to embrace financial innovation while enforcing robust standards for consumer protection and market integrity. This regulatory clarity is expected to stimulate institutional participation and enhance the legitimacy of the crypto ecosystem in Turkiye and beyond.

At BBO Legal, we continue to advise fintech clients on how to navigate the emerging regulatory landscape with confidence and agility.