What Does Türkiye's New Draft Crypto Legislation Mean For Foreign Crypto Asset Service Providers?

Türkiye's fintech sector, fueled by its young and unbanked population, has seen rapid growth in 2023, with Turkish fintech companies' continuing to draw significant investment starting to change the M&A scene. This expanding market also includes Turkish crypto sector, which has been a particularly dynamic segment. Türkiye is about to introduce its first-ever legislation to regulate the cryptocurrency sector. This pioneering move is set to unfold through a series of amendments to the existing Capital Markets Law No. 6362 that will be supplemented later by subsequent secondary legislations.

The legislative push is driven by several factors. Primarily, Türkiye's position as a global leader in crypto adoption is noteworthy, with over half of Turkish adults aged 18-60 owning cryptocurrencies. However, this large investor group currently operates without any legal safeguards. Furthermore, the introduction of comprehensive crypto legislation is seen as a crucial step for