As of 16 April 2021, the first legislation specific to Crypto Assets have been issued by the Central Bank of Turkey (“Central Bank“). This is a regulation on the Use of Crypto Assets in Payments (“Regulation”) and will enter into force on 30 April 2021.
The Regulation is quite brief and restricts the use of crypto assets as a means of payment. Please find below a brief summary:
Crypto assets are defined as intangible assets that are created virtually using the distributed ledger technology or a similar technology, distributed through digital networks, and not classified as fiat money, bank money, electronic money, payment instrument, security or capital market instrument. With this explicit definition, the Turkish regulators clarified that the crypto assets cannot be considered as a payment instrument or as a capital markets instrument in Turkey.
The Regulation prohibits not only the direct or indirect use of crypto assets in payments but also bans payment services providers from developing business models enabling direct or indirect use of crypto assets in payment services and in electronic money issuances.
Furthermore, payment and electronic money institutions are banned from acting as intermediary for fund transfers to crypto asset trading platforms. Fund transfers to crypto asset trading platforms can still be made through banks.
Although there is still a grey area creating questions on the use of crypto assets and platforms, with this brief regulation, the Turkish Central Bank has clarified its position on the status of crypto assets and preferred to treat them as investment instruments rather than as a payment instrument.
Share
Related persons
You can contact us for detailed information.
Legal Information
This briefing is for information purposes; it is not legal advice. If you have questions, please call us. All rights reserved.
You May Be Interested In
29 November 2024
Turkish Competition Law Newsletter – 2024 Autumn Issue
The first decision involved Trugo Akıllı Şarj Çözümleri Sanayi ve Ticaret A.Ş. (“Trugo”), a subsidiary of Türkiye’nin Otomobili Girişim…
15 November 2024
WPP YEKA Tender 2024
The Republic of Türkiye’s Ministry of Energy and Natural Resources (“Ministry”) announced the Tender for the Allocation of Renewable…
25 October 2024
Regulation on the Withdrawal of Human Medicinal Products and Foods for Special Medical Purposes
The Regulation introduces provisions regulating withdrawal processes in a specific and detailed way and aligning such processes with modern…
30 September 2024
Prohibition on Cash Payments, Order Procedures, and Advertising for Crypto Platforms
In the bulletin dated September 19, 2024, a new principle decision numbered 1484 was published, establishing certain principles and…
24 September 2024
Recent Developments in Healthcare Legislation – 2024 Summer Edition
We would like to share with you our information note where we have summarised the latest developments in the healthcare legislation…