Turkey Crypto Payment Ban: 2021 Regulations Explained

30 July 2025

On April 30, 2021, Turkey made a move that shocked many in the global crypto community: it banned the use of cryptocurrencies for payments. Not trading. Not holding. Not investing. Just paying with Bitcoin, Ethereum, or any other digital asset. If you wanted to buy coffee, pay your rent, or order food online, you couldn’t use crypto-even if the seller was willing. But you could still buy it, sell it, and hold it. That’s the Turkish paradox.

Why did Turkey ban crypto payments?

The Central Bank of the Republic of Turkey (CBRT) didn’t act on a whim. They listed five clear risks in their official announcement published in the Official Gazette (No. 31456):

• Cryptoassets have no central regulator or oversight.
• They’re wildly volatile-prices can swing 20% in a day.
• They’re anonymous, making them attractive for money laundering and illegal transactions.
• Wallets can be stolen, and once funds are gone, there’s no way to reverse the transaction.
• Payments are irreversible, leaving consumers with zero protection if something goes wrong.

These weren’t hypothetical concerns. Turkey had seen a surge in crypto adoption, especially after the lira lost nearly 50% of its value against the dollar between 2018 and 2021. People turned to Bitcoin and USDT as a hedge. But as usage grew, so did the risk of unregulated financial chaos. The CBRT’s goal wasn’t to stop crypto-it was to stop it from becoming part of everyday commerce.

What exactly does the ban cover?

The regulation is narrow but strict. It bans:

• Merchants from accepting crypto as payment for goods or services.
• Payment processors and electronic money institutions from facilitating crypto transactions.
• Any direct or indirect use of crypto to settle payments.

But here’s what it doesn’t ban:

• Buying or selling crypto on exchanges.
• Holding crypto in personal wallets.
• Transferring crypto between individuals or platforms.
• Custody services or crypto lending.

So if you’re in Istanbul and want to pay for your Uber ride with ETH? Not allowed. But if you buy ETH on Binance Turkey and hold it until the lira drops again? Completely legal. This split approach is unusual. Most countries either ban crypto entirely (like China) or embrace it as legal tender (like El Salvador). Turkey chose a middle path: let people trade, but keep crypto out of the payment system.

How did people react?

Turkish crypto users didn’t disappear-they adapted. By 2023, nearly 1 in 5 Turks (19.3%) were actively using cryptocurrencies, up from just 1.8% in 2020. That’s an 11-fold increase in just three years. But the payment ban created a frustrating gap.

Reddit threads in r/CryptoTurkey are full of complaints like: “I can trade freely but can’t use my USDT to pay for dinner-that’s the Turkish crypto paradox.” Trustpilot reviews for Binance Turkey show a 3.8/5 rating, with users praising fast deposits and low fees, but consistently writing: “Great for trading, useless for payments.”

Businesses didn’t benefit either. A 2024 survey by TÜİK (Turkish Statistical Institute) found only 2% of Turkish businesses accepted crypto payments. Compare that to Georgia, where 14% do-despite having no such ban. Turkey’s economy lost out on innovation, convenience, and potential foreign investment.

What changed after 2021?

The 2021 ban was just the beginning. In July 2024, Turkey passed the Law on Amendments to the Capital Markets Law, giving the Turkish Capital Markets Board (CMB) full authority over crypto. Now, every crypto exchange, wallet provider, or custodian must be licensed by the CMB to operate in Turkey.

The requirements are tough:

• Exchanges need at least TRY 150 million ($4.1 million) in capital.
• Custodians need TRY 500 million ($13.7 million).
• All platforms must register locally and submit detailed transaction logs.
• They must block transactions involving unregistered wallets.

In March 2025, the CMB blocked 46 crypto platforms-including popular DeFi services like PancakeSwap-for operating without licenses. The message was clear: no more offshore platforms serving Turkish users.

Then came the AML rules. Starting February 25, 2025, any crypto transaction over 15,000 Turkish lira (about $425) requires full identity verification. Even transfers between wallets must show valid sender details. If you send crypto from an unverified address, the transaction can be frozen. This is stricter than most EU countries.

Who’s challenging the ban?

Not everyone agrees with the government’s approach. Sima Baktaş, founding partner of Turkish law firm GlobalB, is taking the government to court. Her case, scheduled for May 28, 2025, argues that the payment ban stifles innovation and pushes crypto activity underground.

Baktaş points to data: Turkey’s crypto market is now worth $170 billion. Millions of people use it. The ban isn’t stopping adoption-it’s just making it harder to use. She argues that legalizing crypto payments could bring transparency, reduce black-market trading, and attract blockchain startups to Turkey.

“Lifting the ban would foster financial sector development, make payments more effective, and increase Turkey’s attractiveness for blockchain businesses,” she told MiTrade in March 2025.

Her case could be a turning point. If successful, it could force the government to rewrite the rules-not to ban crypto, but to regulate it properly.

How does this affect businesses?

For payment processors, the rules are clear: you must build systems to detect and block any crypto transaction. That means monitoring transaction patterns, flagging wallet addresses, and training staff to spot attempts to bypass the ban. Deloitte Turkey reported that compliance teams at major exchanges grew by 30-40% after the 2025 AML rules kicked in.

Businesses that want to accept crypto face a dead end. Even if they set up a wallet, they can’t legally use it to receive payments. Some try to work around it-offering discounts for “donations” or using third-party intermediaries-but those are legal gray zones. The risk of fines or license revocation is too high.

As a result, Turkish startups avoid crypto integration entirely. The country’s blockchain ecosystem thrives in trading and custody-but not in real-world use cases.

What’s next for Turkey’s crypto scene?

The future hinges on two things: the court case in May 2025, and whether the government sees crypto as a threat or an opportunity.

If the ban stays, Turkey will remain a crypto trading hub with no real economy around it. People will keep buying Bitcoin to protect their savings, but they won’t be able to spend it. That’s not innovation-it’s financial isolation.

If the ban is lifted or modified, Turkey could become a leader in regulated crypto payments in the region. Imagine a world where you can pay your utility bill with USDT, get instant settlement, and pay zero fees. That’s possible-if the rules change.

For now, Turkey walks a tightrope. It wants to protect its currency and prevent financial instability. But it’s also ignoring a massive, growing market of 19 million active crypto users. The question isn’t whether crypto will survive in Turkey. It already has. The question is whether the government will let it grow beyond the shadows.

How does Turkey compare to other countries?

Turkey’s approach is unique. Here’s how it stacks up:

Comparison of Crypto Payment Policies

Country	Crypto Payment Ban?	Crypto Trading Allowed?	Regulatory Authority
Turkey	Yes (since 2021)	Yes	CBRT (payments), CMB (trading)
China	Yes (full ban since 2021)	No	People’s Bank of China
El Salvador	No	Yes	Government (Bitcoin legal tender)
Russia	Partially	Yes	Central Bank of Russia
Kazakhstan	No	Yes	National Bank of Kazakhstan

Turkey isn’t alone in restricting payments. Russia and Kazakhstan also limit crypto use in commerce-but neither banned it outright. Turkey’s version is the strictest among these nations. And unlike El Salvador, where crypto is integrated into the economy, Turkey treats it like a dangerous guest you can invite to the party-but not let near the cash register.