Regulation of Crypto Assets Under Turkish Law

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The rapid global rise of crypto assets has also prompted Turkey to establish its first legal framework in this area. In 2024, the Law No. 7518 Amending the Capital Markets Law was enacted, marking the first comprehensive legislation in Turkish law to define and regulate crypto assets directly.

Definition of Crypto Assets

According to the Law, crypto assets are defined as “intangible assets that can be created and stored electronically using distributed ledger technology or similar technology, distributed through digital networks, and that may represent value or rights.” This definition places crypto assets under the category of intangible assets in Turkish law.

Types of Crypto Assets

The general preamble of the Law outlines several subcategories of crypto assets:

  • Security Crypto Assets: Assets that incorporate rights specific to securities.

  • Electronic Money Crypto Assets: Digital assets designed for electronic payment purposes.

  • Utility Crypto Assets: Assets granting access to a particular product or service.

  • Stable Crypto Assets: Digital assets pegged to reserve assets or currencies to maintain stable value.

  • Algorithmic Stable Crypto Assets: Assets that attempt to stabilize value through algorithms and market incentives rather than reserves.

Crypto Asset Service Providers (CASPs)

The Law provides a broad definition of Crypto Asset Service Providers (CASPs), including platforms, custody service providers, and other entities to be determined by the Capital Markets Board (CMB). While the Law sets out general requirements for their establishment, governance, capital adequacy, and IT infrastructure, detailed rules are delegated to the CMB.

Custody Services

The Law explicitly defines custody services as the safekeeping of crypto assets or private keys enabling transfer rights. This regulation gained importance after the Thodex scandal, where questions regarding the whereabouts of cold wallets dominated public discussion.

Trading Platforms

Although the Law itself uses the term “platform,” its preamble refers specifically to “crypto asset platforms.” These platforms are understood as digital marketplaces that facilitate the buying and selling of crypto assets.

Conclusion

Law No. 7518 provides the first structured legal framework for crypto assets in Turkey, offering definitions and establishing basic rules for service providers, custody, and trading platforms. However, its scope remains limited, and more detailed regulations are expected from the CMB. To foster transparency, investor confidence, and compliance with international standards, Turkey will need further legislative developments in this area.