Crypto Exchange Licensing in Turkey: Requirements, Costs, and Real-World Impact

Before 2025, operating a crypto exchange in Turkey was a gray zone. No clear rules meant anyone could set up a platform, collect user funds, and disappear overnight. That changed when the Capital Markets Board (CMB) dropped two binding communiqués in March 2025. Suddenly, running a crypto exchange wasn’t just about tech-it became a legal, financial, and compliance marathon. If you’re thinking about launching or using a crypto exchange in Turkey, you need to understand what’s required, how much it costs, and what’s really happening on the ground.

Who Can Apply for a Crypto Exchange License in Turkey?

You can’t just register a company and call it a day. To get licensed, you must be a joint-stock company incorporated under Turkish law. Shares must be issued in cash, not in kind, and registered by name-no anonymous ownership allowed. Foreign companies can’t directly operate in Turkey. If you’re based outside the country, you need to set up a local legal entity. Even then, there are limits: foreign-owned exchanges can’t actively market their services to Turkish users or maintain physical offices within the country. This isn’t about protecting local businesses-it’s about control. The government wants to know exactly who’s handling Turkish citizens’ money.

Founders and key executives face strict scrutiny. The CMB runs a full fit-and-proper test: criminal background checks, financial history reviews, and proof of no prior ties to sanctioned entities. If you’ve ever been flagged by MASAK (Turkey’s Financial Crimes Investigation Board) or had a bank account frozen for suspicious activity, your application is dead on arrival. There’s no appeal process. One red flag, and you’re out.

How Much Money Do You Need?

The capital requirements are among the highest in the region. For a standard crypto exchange, you need at least 150 million Turkish Lira in paid-in capital-roughly $4.1 million USD as of late 2025. That’s not a deposit. It’s money you lock up permanently in a Turkish bank account, untouched and unavailable for trading or operations. Custodial service providers, who hold users’ crypto, need even more: 500 million TL ($13.7 million USD). That’s more than what’s required in Singapore for similar services.

But capital isn’t the only cost. You also pay 2% of your total revenue annually-1% to the CMB and 1% to TUBITAK, Turkey’s science and tech council. That’s on top of salaries, tech infrastructure, legal fees, and compliance audits. For a small exchange doing $10 million in monthly volume, that’s $2.4 million a year just in fees. Most startups can’t survive that. Only firms with serious backing or existing global operations can compete.

What Systems Must You Build?

It’s not enough to have money. You need bulletproof systems. Every exchange must have:

• A real-time transaction monitoring system that flags suspicious activity, including canceled or unexecuted trades
• An AML/KYC platform that verifies every user with government-issued ID, proof of address, and source-of-funds documentation
• A mandatory KYC threshold: any transaction over 15,000 TL (~$425) requires full identity verification and a documented reason
• Dedicated risk management and compliance teams, not outsourced contractors
• Integration with Turkish banking systems to process fiat deposits and withdrawals

These aren’t suggestions. They’re non-negotiable. The CMB conducts surprise audits. If your system logs show gaps-say, a user deposited 200,000 TL without proper KYC-you could lose your license within 72 hours. No warning. No grace period.

What Happens If You Don’t Get Licensed?

In July 2025, Turkey shut down 46 unlicensed exchanges overnight. That included big names like PancakeSwap and other decentralized platforms that Turkish users relied on. The government didn’t just block websites-they seized domain names, froze bank accounts tied to those platforms, and pressured payment processors to cut off services.

One of the most shocking cases was the arrest of the founder of ICRYPEX on July 28, 2025. Authorities claimed the exchange was funneling crypto to political opponents. The case hasn’t gone to trial, but the message was clear: compliance isn’t just about rules-it’s about politics. Even licensed exchanges now fear that MASAK can freeze accounts without a court order. If you’re flagged, your money vanishes. No appeal. No transparency.

How Long Does the Process Take?

Don’t expect to get licensed in a few months. Legal firms in Istanbul say the average prep time is 6 to 12 months. Why so long? Because you’re not just filling out forms-you’re rebuilding your entire company structure. You need Turkish legal counsel to restructure your corporate ownership, draft internal control policies, train staff on MASAK protocols, and translate every document into Turkish. Even then, the CMB doesn’t publish approval rates. Experts estimate that fewer than 30% of applications succeed on the first try. Most fail because of small oversights: a shareholder’s tax form was filed a day late, or the compliance officer’s resume didn’t include a required certification.

International applicants face an even steeper climb. If your team doesn’t speak Turkish, you’re at a disadvantage. The CMB doesn’t accept English-only submissions. You need bilingual legal teams who understand both Turkish corporate law and the CMB’s internal expectations. Many firms now offer full-service licensing packages: incorporation, compliance system setup, document translation, and regulator liaison-all for $250,000+.

Who’s Winning in This New System?

Only three exchanges have received full licenses as of November 2025: BTCTurk, Koinim, and Paribu. These were already the largest players before the crackdown. Now, they dominate 92% of the market. Smaller exchanges either folded or became white-label operators under these licensed giants.

Users notice the difference. Trading volumes dropped 40% after the July 2025 shutdowns, but the remaining platforms have seen fewer fraud cases and faster customer support. People are willing to trade on fewer, more regulated platforms because they trust them more. Still, many users have turned to peer-to-peer (P2P) markets or offshore exchanges, risking their funds without any legal protection.

What’s Next for Crypto in Turkey?

Turkey’s approach is a mix of control and pragmatism. The government doesn’t want crypto to replace the lira-it wants to monitor every transaction to prevent capital flight. That’s why payments with crypto are still banned. But they also don’t want to lose the tech talent and innovation that crypto brings. So they created a cage: high barriers to entry, strict surveillance, and zero tolerance for non-compliance.

Looking ahead, expect tighter rules on staking, lending, and DeFi services. The CMB is already drafting new guidelines for these activities. Foreign investors are watching closely. If Turkey opens up to international capital in 2026, we might see lower capital thresholds. But for now, the message is clear: if you want to operate here, you play by their rules-no exceptions.

Is It Worth It?

For a global exchange with deep pockets, Turkey’s market is still attractive. Over 15 million Turks have used crypto at least once, and inflation keeps demand high. But for anyone without millions in capital and a legal team on standby? Forget it. The licensing process isn’t a hurdle-it’s a wall. And once you’re inside, you’re under constant watch.

The real winners aren’t the exchanges. They’re the lawyers, auditors, and compliance consultants who made a fortune helping companies navigate this maze. For users? The trade-off is simple: less choice, but more security. Whether that’s worth it depends on how much you trust the system-or fear it.