Blockchain and Cryptocurrency Lawyer in Istanbul, Turkey

Blockchain and Cryptocurrency Law in Turkey

There is no single law that covers every blockchain project or cryptocurrency-related activity in Turkey.

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Instead, several areas of Turkish law can become relevant depending on the structure and purpose of the project.

 

These may include:

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• Capital-markets legislation

• Crypto-asset regulation

• Anti-money laundering requirements

• Corporate and commercial law

• Payment-services legislation

• Banking regulations

• Personal-data protection

• Consumer protection

• Information-technology law

• Cybersecurity

• Intellectual property

• Tax

• Competition law

• Employment law

• Contract law

• Litigation and arbitration

• Cross-border regulatory requirements

 

The legal position can therefore change considerably from one project to another.

 

A company developing blockchain software is not necessarily in the same legal position as a cryptocurrency exchange. A custody provider is different from a token-development company. A business accepting crypto-assets for a particular commercial purpose may raise different questions from a platform operating a trading environment.

 

That is why a legal assessment should follow the actual business model, rather than simply the word “crypto” or “blockchain.”

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Turkey's Crypto-Asset Regulatory Framework

One of the most important developments in Turkish crypto-asset law was Law No. 7518, which amended the Capital Markets Law and introduced specific provisions concerning crypto-assets and crypto-asset service providers.

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The framework places relevant crypto-asset activities within the supervisory structure of the Capital Markets Board of Türkiye (SPK).

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The SPK's dedicated crypto-asset service-provider section provides information about regulatory applications, lists and related developments.

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The legal framework should always be considered together with the applicable secondary legislation and subsequent amendments. Businesses should also distinguish between legislation that has been enacted, regulatory applications that have been submitted and actual authorization to conduct a regulated activity.

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Why the Regulatory Classification Matters

A business may describe itself as:

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• a technology company,

• a blockchain platform,

• a digital-asset marketplace,

• a wallet provider,

• a financial-technology company,

• a token project, or

• a software provider.

 

Those descriptions do not necessarily determine the legal position.

 

The important questions include:

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• What service is actually being provided?

• Who are the customers?

• What happens to customer assets?

• Who controls the wallets or private keys?

• Is the business facilitating transactions?

• Is it operating a trading platform?

• Is custody involved?

• Is the business dealing with Turkish customers?

• Does the business provide services from Turkey?

• Are regulated financial services involved?

• Does the business have activities outside Turkey?

 

These questions help establish the relevant regulatory perimeter.

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Crypto-Asset Service Providers in Turkey

The Turkish framework specifically addresses crypto-asset service providers.

Depending on the particular business model, regulated activities can include services relating to:

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• Crypto-asset trading

• Operation of crypto-asset platforms

• Custody

• Crypto-asset transfers

• Other activities falling within the statutory framework

 

The details matter because not every blockchain business is automatically a crypto-asset service provider, while a business that performs a regulated activity cannot avoid the relevant rules simply by describing itself as a technology company.

 

The SPK's crypto-asset service-provider pages should be consulted when assessing the current regulatory position.

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The SPK's "Faaliyette Bulunanlar Listesi"

Businesses conducting due diligence on Turkish crypto platforms should pay close attention to the terminology used by the SPK.

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The SPK publishes a Faaliyette Bulunanlar Listesi, which is a transitional list concerning organizations that have declared that they will continue operating under the relevant transitional provisions.

 

Importantly, the SPK itself states that appearing on this list does not mean that the organization has been authorized under the legislation.

 

The current SPK Faaliyette Bulunanlar Listesi should therefore be read carefully when carrying out legal or commercial due diligence.

 

This distinction can matter when:

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• investing in a platform,

• entering into a commercial agreement,

• selecting a custody provider,

• evaluating a business acquisition,

• assessing a potential partner, or

• reviewing a company's regulatory status.

 

A transitional listing, an application and a completed authorization are not necessarily the same thing.

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Crypto-Asset Licensing and Regulatory Preparation

For a business that falls within the regulated framework, regulatory preparation is not simply a matter of filling out an application.

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The underlying company and its operations may need to be structured around the applicable requirements.

 

Depending on the activity, legal work may involve:

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• Corporate structure

• Shareholding

• Management

• Internal controls

• Risk management

• Compliance

• Information systems

• Cybersecurity

• Custody

• Record keeping

• Auditing

• Capital requirements

• Customer agreements

• Technology contracts

• Outsourcing

• Business continuity

• Regulatory reporting

 

The SPK's official regulatory materials should be checked throughout the process because requirements can develop through legislation, secondary regulations, decisions and regulatory practice.

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Building the Legal Structure Before Launch

For a new crypto business, it is usually more practical to consider the regulatory structure before the product is fully built.

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For example, suppose a company is developing a platform that allows users to purchase and sell digital assets.

 

Before launch, the founders should know:

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1. Which entity will operate the platform?

2. What services will the company provide?

3. Who will hold or control customer assets?

4. What role will a third-party custodian play?

5. Which customer agreements are required?

6. What information will be collected?

7. How will customer identification work?

8. What happens when a transaction fails?

9. Which technology providers will be involved?

10. What regulatory permissions or procedures may apply?

 

Answering these questions early can reduce the need to redesign the business later.

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Cryptocurrency Exchanges and Trading Platforms

A cryptocurrency exchange is more than a website or mobile application.

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Behind the user interface there may be:

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• Customer onboarding

• Identity verification

• Wallet infrastructure

• Asset custody

• Trading systems

• Order management

• Transfers

• Banking relationships

• Technology suppliers

• Cybersecurity controls

• Customer support

• Complaints procedures

• AML controls

• Data-processing activities

• Regulatory reporting

 

Each part can have legal consequences.

 

The customer-facing terms should also accurately describe how the platform actually works.

 

A platform should not promise one custody arrangement in its customer agreement while operating another in practice. Similarly, responsibility for unauthorized transactions, technical failures, account restrictions and security incidents should be addressed clearly.

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Crypto-Asset Custody

Custody is one of the most sensitive areas of crypto-asset activity.

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Traditional financial assets and crypto-assets do not operate in exactly the same way. Digital assets may be controlled through private keys, wallets and technical infrastructure, making operational security an important part of the legal relationship.

 

A custody arrangement should therefore raise practical questions such as:

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• Who controls the private keys?

• Where are the keys held?

• Is custody performed directly or through another provider?

• How are assets segregated?

• What happens if the custodian becomes insolvent?

• Who bears responsibility for unauthorized transfers?

• What happens if a wallet is compromised?

• How are customer instructions authenticated?

• What records are maintained?

 

The legal documents should reflect the actual technical architecture.

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Cryptocurrency Customer Agreements

Crypto businesses need contracts that ordinary customers can understand and that accurately describe the service.

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Depending on the business, documentation may include:

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• Platform terms

• Customer agreements

• Custody terms

• Trading rules

• Risk disclosures

• Fee schedules

• Privacy notices

• Complaints procedures

• Transfer terms

• Account suspension provisions

• Termination provisions

 

A well-drafted agreement should also explain what happens when things go wrong.

 

For example:

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What happens if a transaction is sent to the wrong wallet?

What happens if the platform experiences a security incident?

What happens if a blockchain network becomes congested?

What happens if a third-party service provider fails?

 

These are commercial questions as much as technological ones.

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Token Projects and Token Issuance

Not every token represents the same legal or economic interest.

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A token could be connected to:

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• Access to a digital service

• Rights within a blockchain ecosystem

• A particular underlying asset

• A contractual entitlement

• Governance

• Investment-related expectations

• Other rights or functions

 

For that reason, token projects should undergo legal analysis before the token is offered, marketed or distributed.

 

The analysis can involve:

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• Token characteristics

• Rights attached to the token

• Issuer

• Distribution structure

• Target customers

• Marketing

• Trading arrangements

• Geographic scope

• Custody

• Applicable financial regulation

 

The legal documents should describe the product accurately rather than attempting to fit a technical product into a predetermined legal category.

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Token Documentation

Depending on the project, documentation may include:

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• Token terms

• Offering documents

• Risk disclosures

• Customer agreements

• Platform terms

• Distribution agreements

• Investor agreements

• Intellectual-property provisions

• Technology agreements

• Privacy documentation

 

The documents should be prepared alongside the technical and commercial design of the project.

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Smart Contracts and Turkish Law

Smart contracts can automate transactions, but automation does not remove the need for legal agreements.

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A piece of code can determine what happens technically when certain conditions are met. It may not, however, answer every legal question that could arise between the people and companies involved.

 

Questions can include:

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• Was a valid agreement formed?

• Who had authority to deploy the contract?

• What happens if the code contains an error?

• Who is responsible for a security vulnerability?

• What if an oracle supplies incorrect information?

• Can a transaction be reversed?

• Which law governs the relationship?

• Which court or arbitral tribunal has jurisdiction?

 

For commercially important blockchain projects, the relationship between code and contract should therefore be examined carefully.

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Decentralized Finance and DeFi

Decentralized finance introduces another layer of complexity.

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A DeFi arrangement can involve:

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• Smart contracts

• Developers

• Protocol operators

• Governance participants

• Liquidity providers

• Token holders

• Wallet providers

• Oracles

• Infrastructure providers

• Users

 

The word “decentralized” does not by itself determine whether Turkish law applies to a particular person or business.

 

The legal analysis should look at how the protocol operates in reality, who performs which function, who controls what, how the project is marketed and where the relevant participants are located.

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Anti-Money Laundering and MASAK

Crypto-asset businesses also need to consider Turkey's anti-money laundering framework.

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The Financial Crimes Investigation Board (MASAK) has published regulatory materials concerning crypto-asset service providers and customer identification.

 

Businesses should consult MASAK's official website and its published legislation and guidance materials when developing their compliance systems.

 

Depending on the business, relevant matters may include:

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• Customer identification

• Risk assessment

• Transaction monitoring

• Suspicious transaction reporting

• Record keeping

• Customer information

• Transfer information

• Internal compliance

• Enhanced measures for higher-risk relationships

 

AML compliance should be built into the operating model rather than treated as a document produced only for a regulatory application.

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KYC and Customer Identification

Know-your-customer procedures can affect the entire customer journey.

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A crypto business may need to consider:

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• What information is collected?

• When is identity verified?

• How is identity verified?

• How is customer risk assessed?

• How are transactions monitored?

• What happens when information is incomplete?

• When can an account be restricted?

• How long are records retained?

• Who has access to customer information?

 

The legal and technical systems should work together.

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Crypto-Asset Transfers

Blockchain transfers may appear straightforward because the transaction is recorded on a distributed ledger.

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From a compliance perspective, however, a transfer can involve additional questions.

 

For example:

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• Who initiated the transfer?

• Who controls the receiving wallet?

• What information is available about the counterparty?

• Does the transaction require additional verification?

• Are there suspicious-transaction indicators?

• What records need to be maintained?

• Are additional transfer-related requirements applicable?

 

The applicable MASAK rules should be reviewed according to the specific activity and transaction structure.

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Cryptocurrency and Payment Services in Turkey

Crypto-assets and payment services should not automatically be treated as the same legal activity.

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Turkey has specific legislation governing payment services and electronic money, while the use of crypto-assets in payments has also been addressed through separate regulatory measures.

 

The Central Bank of the Republic of Türkiye (TCMB) is an important official source for payment-services regulation. Businesses should consult its payment-services and electronic-money information when assessing a payment-related fintech model.

 

The Official Gazette should also be checked for the current wording of regulations and amendments.

 

A proposed product involving crypto payments may therefore require analysis under more than one regulatory framework.

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Blockchain and Personal Data Protection

Blockchain technology can create unusual data-protection questions.

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Turkey's Personal Data Protection Authority (KVKK) has published material concerning blockchain and personal-data protection.

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Businesses should consult the KVKK official website and its published decisions, guidance and legislation when designing a blockchain system that processes personal data.

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The key question is not simply whether a blockchain contains data.

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The more useful questions are:

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• What information is being recorded?

• Is it personal data?

• Who determines the purposes of processing?

• Who processes the information?

• Is the data written directly onto the blockchain?

• Could the same purpose be achieved through off-chain storage?

• Who can access the information?

• Can information be corrected or removed?

• Is information transferred outside Turkey?

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On-Chain and Off-Chain Data

One practical approach is to examine whether personal data genuinely needs to be stored directly on a blockchain.

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In some systems, a business may be able to keep sensitive personal information in controlled off-chain systems while using the blockchain for verification, records or other technical purposes.

 

Whether that approach is appropriate depends on the specific architecture and legal requirements.

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GDPR and International Blockchain Projects

Turkish businesses serving European customers may also encounter European data-protection law.

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A blockchain project with EU-facing activities should separately examine the requirements of the European Commission's official GDPR resources.

 

The legal analysis may become particularly relevant where a Turkish company:

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• serves customers in the EU,

• processes personal data of people in the EEA,

• uses European service providers,

• transfers personal data internationally, or

• operates an international digital-asset platform.

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MiCA and Turkish Crypto Businesses

Turkish crypto businesses considering expansion into Europe should also consider the EU's Markets in Crypto-Assets Regulation (MiCA).

MiCA creates a European framework covering specified crypto-assets and crypto-asset services. Its regulatory perimeter is not identical to Turkey's.

The official European Securities and Markets Authority (ESMA) MiCA materials provide an important source for businesses assessing European requirements.

ESMA also maintains an official MiCA register, including information concerning crypto-asset service providers and relevant crypto-asset documentation.

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For a Turkish business entering the EU market, questions can include:

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• Does the service fall within MiCA?

• Is authorization required?

• Which entity should provide the service?

• Is a white paper required?

• Which customer-protection requirements apply?

• How should custody be structured?

• What marketing restrictions apply?

• Which Member States are involved?

• Are other EU financial regulations relevant?

 

MiCA analysis should be carried out separately from Turkish regulatory analysis.

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Tax and Accounting Issues for Cryptocurrency

Crypto transactions can also create tax and accounting questions.

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The appropriate treatment may depend on:

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• The taxpayer

• The nature of the asset

• The nature of the transaction

• Whether the activity is commercial

• Revenue model

• Trading activity

• Investment structure

• Cross-border transactions

 

The legal and tax structures should therefore be considered together.

 

For Turkish tax matters, businesses should consult the Revenue Administration (GİB) and the applicable Turkish tax legislation.

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Blockchain Intellectual Property

Blockchain companies often invest heavily in technology and intellectual property.

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Potentially valuable assets include:

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• Source code

• Software

• Algorithms

• Smart contracts

• Databases

• Trademarks

• Logos

• Domain names

• User interfaces

• Technical documentation

• Proprietary systems

 

The ownership of these assets should be clear from the beginning.

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Blockchain Software Development Agreements

When external developers are involved, the development contract should answer practical questions such as:

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• Who owns the source code?

• Who owns later improvements?

• Who owns smart-contract code?

• Which open-source components are being used?

• What warranties are given?

• Who is responsible for vulnerabilities?

• What happens when the agreement ends?

• Can the developer reuse any of the code?

• Who controls repositories and credentials?

 

These details can become particularly important during investment, acquisition or a dispute.

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Blockchain Cybersecurity

A crypto business can face security incidents involving:

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• Private keys

• Wallets

• Smart contracts

• APIs

• Customer accounts

• Cloud infrastructure

• Exchange systems

• Third-party technology

• Insider access

 

Cybersecurity is therefore not merely an IT issue.

 

It can affect contractual liability, regulatory compliance, customer relationships, evidence, data protection and potential litigation.

 

A legal review can help establish responsibility between the business and its technology suppliers before an incident occurs.

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Cryptocurrency Fraud and Disputes

Crypto-related disputes can be technically complicated because blockchain transactions may be visible while the identity behind a wallet address may initially be uncertain.

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Depending on the circumstances, legal work may involve:

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• Transaction analysis

• Blockchain records

• Contractual documents

• Digital evidence

• Wallet movements

• Technology experts

• Civil proceedings

• Criminal-law considerations

• Interim measures

• Cross-border proceedings

• Arbitration

 

A blockchain record can provide important evidence, but it does not automatically answer questions of ownership, authority or legal responsibility.

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Crypto-Asset Commercial Contracts

A crypto business usually needs more than a customer-facing terms-of-service document.

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Its wider contractual network may include:

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Technology Agreements

Software development, licensing, cloud, API and infrastructure agreements.

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Custody Agreements

Arrangements governing the holding or control of crypto-assets.

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Partnership Agreements

Commercial collaborations, distribution arrangements and strategic partnerships.

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Investment Agreements

Shareholder agreements, investment documentation, venture-capital transactions and financing arrangements.

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Outsourcing Agreements

Contracts with technology, compliance, security and operational providers.

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Each agreement should fit into the wider business structure.

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Blockchain Startups in Turkey

For an early-stage blockchain company, legal work is often most useful before the business starts scaling.

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A startup may need to address:

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• Company formation

• Founder arrangements

• Shareholder rights

• Intellectual-property ownership

• Token strategy

• Investment

• Employee and developer agreements

• Confidentiality

• Regulatory classification

• Data protection

• AML/KYC

• Technology licensing

• Commercial contracts

• International expansion

 

The goal is not to surround a young company with unnecessary paperwork. It is to make sure that the company's legal structure grows alongside its technology and commercial model.

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Venture Capital and Blockchain Companies

Investors considering a blockchain company may want to understand much more than the company's financial position.

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Legal due diligence may examine:

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• Corporate ownership

• Founder arrangements

• Intellectual property

• Source-code ownership

• Token rights

• Regulatory status

• Customer agreements

• Technology contracts

• Data protection

• AML compliance

• Litigation

• Employment arrangements

• Material liabilities

 

Investment documents can also address future token issuance, regulatory developments, governance and intellectual-property rights.

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Cross-Border Cryptocurrency Transactions

A Turkish crypto business can quickly become international.

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A single project might involve:

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• A Turkish operating company

• Foreign investors

• International customers

• A European technology supplier

• A foreign custody provider

• A global blockchain protocol

• Cross-border data transfers

 

That can bring several legal systems into the same transaction.

 

The legal review may therefore need to cover:

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• Governing law

• Jurisdiction

• Regulatory permissions

• AML

• Data protection

• Tax

• Consumer protection

• Intellectual property

• Sanctions compliance

• Contract enforcement

 

The cross-border element should be considered from the beginning rather than after the business has already expanded.

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Legal Due Diligence for Crypto Businesses

Before investing in, acquiring or partnering with a crypto business, legal due diligence can provide a clearer picture of the company's position.

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The review may cover:

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• Corporate records

• Share ownership

• Regulatory status

• SPK applications

• Transitional status

• Customer agreements

• Custody arrangements

• Technology

• Intellectual property

• AML/KYC

• Data protection

• Employment

• Litigation

• Commercial contracts

• Tax matters

• Cybersecurity arrangements

 

The precise scope should reflect the proposed transaction and the risks associated with the business.

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Blockchain and Cryptocurrency Legal Services

Kurucuk & Associates provides legal assistance to businesses and investors dealing with blockchain, crypto-assets and related technology.

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Depending on the project, our work may include:

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• Crypto-asset regulatory analysis

• Regulatory-perimeter assessments

• SPK-related matters

• Corporate structuring

• Regulatory applications

• Compliance documentation

• AML/KYC frameworks

• Customer agreements

• Platform terms

• Custody arrangements

• Token-related legal analysis

• Smart-contract review

• Technology agreements

• Intellectual-property matters

• Data protection

• Investment transactions

• Cross-border transactions

• Commercial disputes

• Arbitration

• Litigation

 

The work is tailored to the actual technology, business model and jurisdictions involved.

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Official Sources for Blockchain and Cryptocurrency Regulation

Because crypto-asset regulation continues to develop, businesses should rely on primary regulatory sources when checking the current position.

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Useful official resources include:

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• Capital Markets Board of Türkiye (SPK) — crypto-asset service providers, applications and regulatory information

• Official Gazette of the Republic of Türkiye — legislation and regulatory amendments

• MASAK — anti-money laundering legislation and guidance

• Central Bank of the Republic of Türkiye (TCMB) — payment services and electronic-money regulation

• Personal Data Protection Authority (KVKK) — Turkish personal-data protection law and guidance

• Revenue Administration (GİB) — Turkish tax legislation and official tax information

• European Securities and Markets Authority (ESMA) — EU crypto-asset regulation and MiCA materials

• European Commission — EU data-protection and financial-regulatory information

 

The official sources should be checked against the date of the proposed transaction or activity because regulatory requirements can change.

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Frequently Asked Questions

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Is cryptocurrency legal in Turkey?

Turkey has established a specific legal framework governing crypto-assets and certain crypto-asset service providers. Whether a particular activity is permitted and what requirements apply depends on the nature of the activity and the applicable legislation.

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Are cryptocurrency exchanges regulated in Turkey?

Certain crypto-asset platform activities fall within the regulatory framework administered by the SPK. The legal position depends on the services provided and the structure of the business.

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Does a crypto exchange need authorization in Turkey?

Where the business conducts activities subject to the crypto-asset service-provider framework, the relevant regulatory requirements must be examined. A company should not assume that operating a technology platform automatically places it outside financial regulation.

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Does appearing on the SPK Faaliyette Bulunanlar Listesi mean that a company is authorized?

No. The SPK expressly states that inclusion on the transitional Faaliyette Bulunanlar Listesi does not mean that the organization has been authorized under the applicable legislation.

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Can a foreign crypto company operate in Turkey?

A foreign company's existing authorization in another jurisdiction does not automatically establish its right to conduct regulated activities in Turkey. Turkish corporate, regulatory, AML, data-protection and other requirements may need to be examined.

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Does MASAK regulate cryptocurrency businesses?

MASAK has an important role in Turkey's anti-money laundering framework, including requirements applicable to relevant crypto-asset service providers.

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Does KVKK apply to blockchain businesses?

It can. If a blockchain project processes personal data within the scope of Turkish data-protection law, KVKK requirements may become relevant.

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Are smart contracts legally enforceable in Turkey?

The legal effect of a smart contract depends on the underlying relationship, applicable law, contractual structure and circumstances. Technical code and legal agreements should therefore be considered together.

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Does MiCA apply to a Turkish crypto company?

MiCA is an EU regulatory framework. Whether it applies to a Turkish company depends on the company's activities, services, customers and manner of operating in or accessing the EU market.

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Can a blockchain startup issue a token in Turkey?

Token projects require legal classification before launch. The characteristics of the token, rights attached to it, offering structure, target market and related services can all affect the applicable legal requirements.

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What should I check before investing in a Turkish crypto company?

Due diligence can include the company's corporate structure, regulatory position, SPK status, technology ownership, intellectual property, customer agreements, custody arrangements, AML/KYC framework, data protection, litigation and material commercial contracts.

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Blockchain and Cryptocurrency Lawyer in Istanbul

Blockchain technology may be new, but the legal relationships surrounding it are not.

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Businesses still need clear contracts. Investors still need due diligence. Customers still need understandable terms. Companies still need appropriate corporate structures. Personal data still needs protection, and regulated financial activities still need to comply with the applicable rules.

 

What has changed is the technology through which these relationships are created and operated.

 

For businesses working with blockchain and crypto-assets in Turkey, the most useful legal analysis is therefore practical: understand the technology, identify the people and entities involved, map the flow of assets and information, determine the applicable regulatory framework and then build the contracts and compliance structure around the real business.

 

Kurucuk & Associates advises clients in Istanbul and across Turkey on blockchain and cryptocurrency-related legal matters, including regulatory analysis, crypto-asset service-provider matters, corporate structuring, contracts, compliance, data protection, intellectual property, investment transactions and disputes.