Crypto Exchange Licensing in Turkey: What You Need to Know in 2026

Crypto exchange licensing in Turkey is no longer optional - it’s mandatory.

If you’re running or planning to launch a crypto exchange in Turkey, you’re not just dealing with bureaucracy. You’re navigating one of the strictest crypto regulatory frameworks in the emerging market space. Since March 2025, the Capital Markets Board (CMB) has required every crypto asset service provider (CASP) operating in Turkey to hold a formal license. No exceptions. No gray areas. Unlicensed platforms were blocked en masse in July 2025, and the crackdown didn’t stop there - founders of major exchanges like ICRYPEX were detained on suspicion of funding political opposition. This isn’t just about money laundering. It’s about control.

What’s required to get licensed?

To even apply, you must be a joint-stock company registered in Turkey. Foreign companies can’t just open a branch and start trading. They need a local legal entity, Turkish shareholders, and a physical presence. The minimum paid-in capital? 150 million Turkish Lira - about $4.1 million USD. If you’re offering custody services - storing users’ crypto - that jumps to 500 million TL, or roughly $13.7 million USD. These aren’t suggestions. These are hard walls. Most small exchanges can’t cross them.

It’s not just about cash. The CMB demands proof that your founders and executives have clean records. No criminal history. No financial fraud. No ties to sanctioned entities. They run fit-and-proper checks that dig into personal bank statements, property ownership, and even social connections. One Istanbul-based lawyer told me a client lost their application because the CEO’s brother had an old unpaid credit card debt from 2018. The regulator doesn’t care if it was settled. It’s still a red flag.

Compliance isn’t a checklist - it’s a full-time operation

Licensing is just the entry ticket. Keeping it requires constant effort. Every transaction over 15,000 TL (around $425) needs full KYC verification: government ID, proof of address, source of funds documentation. And you have to keep records of every canceled trade, every failed withdrawal, every failed login attempt. The system must log everything - even the attempts to break in.

You also need a dedicated risk team. Not one person. A full department. They monitor trading patterns in real time, flagging anything unusual: sudden large deposits from new wallets, rapid transfers between accounts, repeated small transactions just under the 15,000 TL threshold. If MASAK - Turkey’s Financial Crimes Investigation Board - sees something suspicious, they can freeze your bank accounts and crypto wallets without a court order. No warning. No appeal. Just gone.

And then there’s the money. You pay 1% of your total income (not profit - income) to the CMB. Another 1% goes to TUBITAK, the national science council. That’s 2% of your revenue, every year, just for being licensed. On a $10 million revenue exchange, that’s $200,000 in fees alone. Add in software, staff, audits, cybersecurity, and legal fees, and you’re looking at operating costs that are 30-40% higher than in places like Estonia or Dubai.

Foreign operators? You’re not welcome here

Unlike Singapore, Malta, or even Japan, Turkey doesn’t want foreign crypto firms setting up shop. You can’t advertise here. You can’t have a Turkish domain. You can’t even have a local customer support number. If you’re based outside Turkey, your only option is to partner with a licensed local entity - and even then, you’re not allowed to control it. The CMB requires that Turkish shareholders hold majority ownership and decision-making power. This isn’t about protecting consumers. It’s about keeping control inside the country.

Compare that to the EU’s MiCA rules. They require similar KYC and AML standards, but their capital requirements are lower, and they actively encourage cross-border licensing. Turkey’s model is more like China’s pre-2021 approach: let people trade, but only through state-approved channels. And if you step out of line? You disappear.

What happened to the unlicensed exchanges?

In July 2025, Turkey blocked 46 crypto platforms overnight. Some were small local startups. Others were global names like PancakeSwap, which had a huge user base in Turkey due to its low fees and no-KYC options. The government didn’t just shut them down - they took down their websites, blocked their apps on Google Play and Apple App Store, and pressured Turkish ISPs to cut off access. Users lost access to their funds. Some reported losing hundreds of thousands of dollars.

That’s the reality now. If you’re trading on an unlicensed platform in Turkey, you’re doing it illegally. And if the platform gets raided? Your money might vanish with it. Licensed exchanges have better security, better customer support, and legal recourse. But they also have less privacy. Every trade is tracked. Every withdrawal is questioned. You’re trading under surveillance.

Why is Turkey doing this?

It’s not just about stopping money laundering. Turkey’s inflation rate hit 60% in 2024. The Turkish Lira lost nearly half its value against the dollar in two years. Millions of Turks turned to Bitcoin and stablecoins to protect their savings. The Central Bank of Turkey (TCMB) banned crypto payments in 2021 - but people kept using it anyway. By 2025, an estimated 12 million Turks held crypto assets. That’s nearly 15% of the population.

The government didn’t want people moving money out of the country. They didn’t want people bypassing capital controls. So instead of fighting it, they decided to own it. License the exchanges. Control the flow. Monitor every transaction. Tax the income. And make sure no one uses crypto to fund political dissent.

The detention of ICRYPEX’s founder in July 2025 was a signal. It wasn’t just about financial crime. It was about political control. Crypto wasn’t just a financial tool anymore - it was a political one. And now, the state is making sure it stays under their thumb.

Can you still make it work?

Yes - but only if you’re serious. You need deep pockets, a local legal team fluent in Turkish corporate law, and a compliance system that can handle real-time reporting to MASAK. You need to hire Turkish-speaking auditors, install Turkish-certified cybersecurity tools, and be ready for surprise inspections.

Most international teams underestimate the time. The application process takes 6 to 12 months. That’s before you even start trading. You need to restructure your company, rewrite your terms of service in Turkish, train your staff on local laws, and build a system that can produce daily reports in the exact format the CMB demands.

And even then, approval isn’t guaranteed. There’s no published success rate. No transparency. You submit your documents, wait, and hope. Some applicants get rejected without explanation. Others get asked for 17 revisions. There’s no appeal process. No public feedback. Just silence.

What’s next for Turkey’s crypto market?

Right now, the market is dominated by three licensed exchanges: Paribu, BtcTurk, and Koinim. They’ve absorbed nearly all the trading volume. Smaller players either folded or went offshore. The users? They’re still trading - but now they’re doing it with less freedom. No anonymous deposits. No fast withdrawals. No privacy.

Looking ahead, regulators are expected to expand the definition of “crypto asset service provider” to include NFT marketplaces, DeFi protocols, and crypto lending platforms. That could bring more companies under the license umbrella - or push them further underground.

One thing’s clear: Turkey isn’t trying to be a crypto hub. It’s trying to be a crypto prison - with gates, guards, and a very tight leash. If you want to operate here, you play by their rules. No compromises. No shortcuts. And no illusions about freedom.

What happens if you ignore the rules?

Don’t. Seriously. Don’t.

Unlicensed platforms are blocked. Bank accounts are frozen. Founders are detained. Users lose money. And there’s no legal path to recover it.

Even if you think you’re safe because you’re based overseas - think again. Turkish users can still access your site. And if they do, you’re violating Turkish law. The CMB can request international cooperation to shut you down. They’ve already done it with exchanges in Germany and the UK.

There’s no gray zone. No loophole. No “just for now.” If you’re offering crypto services to Turkish residents, you’re subject to Turkish law. Period.