- July 25, 2025
- Posted by: admin
- Category: Blog
Introduction
With the global rise of digital currencies, Turkey has emerged as a dynamic and strategic hub for crypto entrepreneurs. Whether you’re an investor, startup founder, or part of a blockchain project seeking international expansion, establishing a crypto-friendly company in Turkey offers several advantages. These include favorable taxation, increasing government clarity on crypto regulations, and a growing tech-savvy population eager to adopt new digital tools. In this article, we explore how foreign investors can navigate business registration in Turkey, open bank accounts, understand legal structures, and avoid regulatory pitfalls while maintaining full compliance.
Why Turkey is Attractive for Crypto Investors
Turkey sits at the intersection of Europe, Asia, and the Middle East, making it geographically and economically strategic. With an increasingly digital-native youth population and over 50% smartphone penetration, the country provides fertile ground for blockchain and crypto currency in Turkey. According to Chainalysis, Turkey ranks among the top countries in crypto adoption globally.
Moreover, the Turkish government’s evolving stance on cryptocurrency reflects a desire to regulate—not ban—the industry. This balanced approach appeals to foreign investors looking for stability and long-term opportunity.
Choosing the Right Business Structure
The most common legal entity chosen by foreigners is the Limited Liability Company (LLC). An LLC in Turkey allows 100% foreign ownership, only one shareholder is needed, and the capital requirement is relatively low (10,000 TRY as of 2025).
For crypto ventures, it is highly advisable to register under a clear business purpose that accommodates crypto-related services such as blockchain consultancy, software development, or digital marketing, pending the future licensing framework. Selecting the right business code from the Turkish Statistical Institute’s (TUIK) NACE classification is key. For more information please read types of companies in Turkey.
The Business Registration Process in Turkey
The process to register a business can be completed in as little as one week if the documents are prepared properly. Below are the essential steps:
- Obtain a potential tax number
- Secure a legal address
- Prepare the Articles of Association
- Notarize documents
- Open a bank account for initial capital deposit
- Register with the Trade Registry Office
For foreigners, partnering with an English Speaking lawyer in Turkey is strongly advised to ensure accurate translations and compliance.
Crypto Licensing in Turkey: Current and Expected Frameworks
As of mid-2025, Turkey does not have a comprehensive crypto licensing regime. However, the Capital Markets Board (SPK) has proposed draft regulations that may soon require platforms and custodial service providers to obtain formal licenses.
Until then, many crypto companies operate legally by registering as software firms or IT consultancies. Staying within the boundaries of the law while the government finalizes its stance is crucial. Those engaging in brokerage or custodial services should expect higher regulatory scrutiny.
For More information please read cryptocurrency licensing in Turkey
Banking Challenges and Workarounds
Perhaps the most significant hurdle for crypto companies in Turkey is banking in Turkey. Many traditional banks remain cautious due to AML (Anti-Money Laundering) concerns. That said, success is possible with the right legal setup, clear documentation of funds, and proactive relationship-building.
Local banks such as Ziraat Bank, VakifBank, and Garanti BBVA may open accounts for tech-based companies, particularly those not directly involved in crypto trading. Having an accountant or consultant fluent in Turkish banking norms can significantly increase the chance of success.
Understanding Taxation: Corporate Tax and VAT in Turkey
Corporate tax in Turkey is currently 20% for resident entities. For foreign-owned crypto companies operating legally, profits generated within the country are subject to this tax.
VAT in Turkey is 20% for most services as of July 2025, but exemptions exist. If you’re exporting software or services to clients outside Turkey, you may qualify for VAT exemption. Ensuring proper invoicing and documentation is essential.
Data Security, KYC, and Compliance Obligations
Even without full crypto regulation, Turkish companies are expected to comply with laws concerning:
- Data protection (KVKK, the Turkish version of GDPR)
- KYC (Know Your Customer) when applicable
- MASAK (Financial Crimes Investigation Board) for reporting suspicious transactions
While these requirements vary based on activity, any crypto-friendly company in Turkey must be prepared to implement strong compliance systems.
Using Tokenization or Blockchain in Your Turkish Business
Innovative business models involving tokenized assets, smart contracts, or decentralized platforms are not prohibited under Turkish law—yet. However, the lack of regulation does not mean total freedom. Each use case should be reviewed for:
- Alignment with commercial law
- Capital requirements
- Intellectual property protection
Getting pre-approval or advisory opinions from the relevant government departments is often helpful.
Government Incentives for Tech Startups
Tech-focused and R&D-based firms, including those working with blockchain, may be eligible for:
- Tax incentives
- R&D grants
- Techno-park exemptions
These incentives are managed through institutions such as the Ministry of Industry and Technology
Buying a Business for Crypto Expansion
For investors wanting a faster market entry, acquiring an existing legal entity might be a viable option. This is especially relevant in cases where banking relationships or licenses are already in place. There are websites and platforms that list business for sale in Turkey, including tech and fintech firms.
Due diligence, however, is critical. Old tax debts, lawsuits, or shady past activities can carry over to the new owner.
Final Recommendations: Avoiding Common Pitfalls
Here are a few tips to avoid problems when setting up a crypto-friendly company in Turkey:
- Use a local accountant familiar with crypto
- Avoid vague or suspicious business descriptions
- Get written legal opinions when in doubt
- Stay updated with SPK and MASAK announcements
Consulting with an English speaking lawyer in Turkey is not just helpful—it’s vital for long-term success.
Conclusion
Turkey presents an exciting yet complex opportunity for crypto investors and blockchain companies. While the legal framework is evolving, proactive compliance, clear business strategies, and local partnerships can make all the difference. Whether you’re launching a startup or expanding operations, building a crypto-friendly company in Turkey can offer substantial returns—if done right.
As the regulatory fog begins to clear, early movers who build a compliant, well-structured presence in the country may gain a competitive edge in one of the world’s most promising crypto frontiers.
Useful Resources:
