Turkey Crypto Crimes: Legal Landscape, Enforcement, and Investor Protection

Overview

Turkey is one of the fastest-growing cryptocurrency markets globally, attracting millions of digital-asset users and investors. Alongside this rapid adoption, the country has also seen a rise in crypto-related crimes, including fraud schemes, unauthorized platforms, illicit fund transfers, and misappropriation of digital assets by service providers.

To protect investors and ensure market integrity, Turkey has introduced a dedicated crypto legal regime and strengthened criminal enforcement mechanisms.

Legal Basis for Crypto Crimes in Turkey

Crypto-asset activities in Turkey are regulated primarily by:

• Capital Markets Law No. 6362

• Crypto Regulation Law No. 7518 (2024)

• Turkish Penal Code (TPC)

• Anti-Money Laundering Law No. 5549

• MASAK (Financial Crimes Investigation Board) Guidelines

Under these laws, crypto-asset service providers must be authorized, comply with AML/KYC rules, and safeguard client funds.

Common Crypto Crimes in Turkey

1. Unauthorized Crypto-Asset Services

Operating an unlicensed exchange or providing custody/transfer services without approval constitutes a crime.

Penalty:
3 to 5 years imprisonment
5,000 to 10,000 days judicial fine

2. Misappropriation by Crypto Platforms (Zimmet)

Misusing user funds or digital assets by exchange operators or employees is treated as aggravated embezzlement.

Penalty:
8 to 14 years imprisonment
Judicial fine up to 5,000 days
If committed through fraud → 14 to 20 years imprisonment

3. Crypto Fraud Schemes

Ponzi structures, fake trading platforms, misleading investment offers, and romance/influence scams fall under fraud provisions.

Penalty:
Up to 10 years imprisonment (depending on severity)

4. Money Laundering With Crypto

Using crypto to conceal proceeds of crime triggers AML sanctions.

Penalty:
3 to 7 years imprisonment
Asset freezing & reporting obligations

Regulatory Enforcement

The Turkish Financial Crimes Investigation Board (MASAK) plays a central role in enforcement by requiring:

• Customer identity verification

• Suspicious transaction reporting

• Transaction monitoring

• Cooperation with prosecutors and courts

Turkey has shown its commitment through large-scale investigations (e.g., Thodex case).

Victim Remedies and Legal Support

Individuals affected by crypto fraud or exchange misconduct may pursue:

• Criminal complaint

• Asset freezing orders

• International cooperation mechanisms (Interpol / Europol)

• Civil compensation claims

• Blockchain transaction tracing & forensic analysis

Timely legal action and technical evidence collection are crucial in crypto-related disputes.

Conclusion

Turkey’s regulatory approach reflects a balance between innovation and investor protection. As the crypto ecosystem expands, legal compliance and early action against fraud risks are vital for individuals and businesses operating in the Turkish market.