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5.46 Neutral Environment
In recent years, the Turkish authorities have been sending contradictory signals regarding the blockchain industry; however, some banks allow crypto transactions and test experimental technologies, whereas the population actively uses cryptocurrencies for saving in an unstable environment. BTCTurk became the first company allowing exchange transactions with bitcoin and the Turkish lira. That exchange started operations in Turkey in early July 2013. Since there were no special laws in Turkey (and they are still missing), BTCTurk operates in compliance with the same KYC (know-your-customer) and ALM (anti-money-laundering) standards as local banks.
In July 2017, the Turkish government initiated a two-year plan designed to crush illegal gambling within the nation. Among the regulations currently under consideration by the Turkish government are measures intended to prevent the use of bitcoin and other cryptocurrencies for illegal gambling activities.

On the other hand, in 2018, the country's authorities changed their attitude to the blockchain industry: the vice-prime minister of Turkey announced that the working group affiliated to the government was exploring cryptocurrencies for a state project, the chairman of Turkey's Nationalist Movement Party (MHP) submitted to the parliament draft market regulations and spoke about the possibility of developing a national crypto currency called TurkCoin.

The crypto industry in Turkey after the year 2016 has remained in limbo — the population actively uses cryptocurrencies to make savings, business launches innovative startups and tests experimental technologies, and the Turkish authorities are in the process of studying the issue and discussing regulatory projects.
Rather Enabling Political Environment
7.0 points
Issues associated with the development of blockchain technologies and regulation of cryptocurrencies are not of great political importance in Turkey, but in the last year, their public discussion has become much more conspicuous. Turkey's political elites give contradictory signals about the cryptocurrency and blockchain industries and study the experience of neighboring countries, although their recent statements have been quite optimistic. Representatives of banks, business and stakeholders look at blockchain with unconditional optimism and hope.
Not Enabling Legal Environment
1.51 points
Regulatory Convergence
In Turkey, there is no legislation specifically designed to regulate blockchain projects and cryptocurrencies that would be applied uniformly by all regulators and courts. The regulation of relationships is not within the jurisdiction of a single agency: banking activities are supervised by the Banking Regulation and Supervision Agency, other financial institutions, by the Capital Markets Board ("CMB"), and the non-financial sector, by the Undersecretary of the Treasury. The central body for reporting suspicious transactions in Turkey is MASAK, the Financial Crimes Investigation Board, a service unit established within the Ministry of Finance.

Definiteness of Legal Regulation
In Turkey, there is no comprehensive legislation specifically designed to regulate relations in the domain of blockchain and cryptocurrencies. The legal relations associated with the use of blockchain and cryptocurrencies are regulated to some extent by various legislative acts and decisions of the regulators, while regulation is built rather by analogy with other similar legal relations, and does not take into account the specific features of blockchain projects. So far, Turkey made no official statement on the status of bitcoins and cryptocurrencies. At the same time, based on the information of the deputy chairman of the Turkish Nationalist Movement Party, it appears that the use of cryptocurrencies in the country is legal. The main regulatory framework is set by the law governing the use of electronic money and electronic payments in Turkey, namely the Law on Payment and Securities Settlement Systems. ICOs are currently allowed in Turkey, although they are not regulated by any special legislation.

Stability of Legal Regulation
The legislation and law-enforcement practice have changed recently and there are good reasons to assume that they will continue to change in the near and medium term (1-3 years). Certain decisions are possible at the level of the Central Bank of the Republic of Turkey and the Parliament.

Adequacy of Legal Regulation
The legislation and law-enforcement practice are rather indifferent to blockchain projects and cryptocurrencies and do not consider these areas to be worth of special care. In Turkey, there are no tax preferences for companies implementing blockchain projects, and there are no special government financing programs for such companies.
Situation with the Rule of Law
Turkey has low indicators of the rule of law, ranking 99h in the world among 113 countries. The conditions of the legal regulation of blockchain and cryptocurrencies are neutral, and since the values of the sub-criterion of the rule of law are low (0.43), the amount of the difference between weighted (multiplied by Rule of Law Index score) and unweighted assessments are significant. This indicates high risks associated with the general conditions of compliance with legal safeguards in Turkey.
Rather Enabling Infrastructure Environment
7.88 points
Telecoms infrastructure, E-Government infrastructure and online services in Turkey are ranked slightly above the average. Turkey ranks 53rd out of 193 countries in the UN E-Government Development Index.

Turkey has moderate indicators for the doing business environment, ranking 60th of the world's 190 countries. Turkey's Doing Business score is a bit below the average for the Europe+Central Asia region (which is 71.33).