Turkey: The Crypto ATM Ban Explained

The operation of cryptocurrency ATMs is currently strictly illegal in Turkey.¹

The Capital Markets Board (CMB/SPK) has ordered their blanket shutdown, with a compliance deadline of approximately January 2, 2025.²

Paradoxically, Turkey represents one of the most hostile environments for this specific business model, despite boasting one of the highest cryptocurrency adoption rates in the world—with crypto-assets owned by an estimated 25% to 52% of the adult population.³ Under the amended Capital Markets Law, any entity operating such devices faces 3 to 5 years of imprisonment.⁴

Last updated: March 2026

Legal Status: Explicit Prohibition 

The ban on crypto ATMs does not fall into a "gray zone" but is instead anchored by three main regulatory pillars:

  • CMB Decision No. 1484 (September 2024): Requires the termination of all activities involving electronic devices that enable the exchange of cryptocurrencies for cash. The Financial Crimes Investigation Board (MASAK) justified this measure by citing a high risk of terrorism financing.⁵

  • Crypto Assets Law (No. 7518): This comprehensive law, enacted in July 2024, clearly defines crypto-assets and introduces a stringent licensing regime for Crypto Asset Service Providers (CASPs).⁶

  • Central Bank (TCMB) Payment Ban: Since April 2021, the direct and indirect use of cryptocurrencies as a means of payment has been banned across the board, preventing banking and payment institutions from intermediating transactions outside of strictly licensed exchanges.⁷

Licensing and Capital Requirements 

Should the ban on crypto ATMs be lifted in the future, operators would be required to meet extremely demanding conditions to obtain a CASP license.⁸ An applicant must be established as a Turkish joint-stock company with a minimum paid-in capital of TRY 150 million (approx. USD 3.4 million) for platforms, or TRY 500 million for custodians.⁹ Requirements also include a technical audit by the state institution TÜBİTAK, full integration into the central securities depository, and the storage of 95% of users' crypto-assets with a licensed entity within Turkey.¹⁰ The annual regulatory fee is 2% of total trading income, and the licensing process realistically takes 12 to 24 months.

Strict AML and KYC Measures 

The Turkish anti-money laundering framework, managed by MASAK, is among the strictest in the world for the crypto sector.¹¹ Establishing a permanent business relationship requires full KYC verification regardless of the deposit amount, thereby making fully anonymous transactions impossible.¹² For one-off transfers, the mandatory identification threshold has been radically reduced to just TRY 15,000 (approx. USD 341).

The international "Travel Rule" is applied, and any suspicious transactions must be reported within 72 hours, regardless of the amount.¹³ Furthermore, additional restrictions introduced in June 2025 are fatal to the business model of instant ATM deposits and withdrawals: a 72-hour delay for the first withdrawal by new users, daily limits on stablecoins of up to USD 3,000, and a strict obligation to formally document all cash payments exceeding TRY 30,000 through financial intermediaries.¹⁴

Banking Services and Market Reality 

In the current climate, obtaining a bank account for an entity operating prohibited crypto ATMs is practically impossible.¹⁵ While large licensed crypto exchanges (e.g., Paribu, BtcTurk, or Binance TR) successfully cooperate with local banks, state-owned banks remain closed to high-risk business models.¹⁶ The market for these machines in Turkey has always been marginal. Before the total ban, only 15 devices (predominantly General Bytes brand) were in operation; these are now being sold at reduced prices on secondary markets as operators were forced to disconnect them.¹⁷ Millions of Turkish users prefer established online exchanges with direct bank connections, where fees are a fraction of a percent (approx. 0.12%), compared to the disadvantageous 8–15% typically charged at ATMs.¹⁸ Entering this market is therefore currently legally and economically unfeasible.

Hardware Import from the EU

Should machines be imported from the European Union regardless, they fall under HS code 8472.90.10.¹⁹ Due to the current customs union, imports into Turkey are exempt from customs duties (0%); however, import VAT (KDV) of 20% of the CIF value applies to the imported amount.²⁰ Hardware components must be accompanied by an A.TR movement certificate and the mandatory European CE marking, confirming compliance with relevant safety directives (LVD, EMC, RED, RoHS).²¹ Standard customs clearance typically takes 3 to 10 business days upon delivery of complete documentation.

Future Outlook (2026–2027)

Legislative developments are moving toward further centralization and tighter supervision.²² Expected steps in the coming years include the introduction of a universal crypto tax, expanded MASAK powers to freeze accounts immediately without a court order, and alignment with the global OECD CARF tax reporting standard.²³ Any eventual legalization of ATMs is highly unlikely, as the Turkish state apparatus continues to draw inspiration from European regulations and global trends that prioritize maximally transparent electronic and exchange infrastructure.²⁴

Sources and references:

1. Gurulkan, 2. Türkiye Today, 3. Sumsub, DemandSage & Triple-A, 4. Global Legal Insights, 5. MASAK & Türkiye Today, 6. Lexology, 7. Turk Fortune, 8. CMS Lawnow & Contextual Solutions, 9. Glavx, 10. Lightspark, chambers, 11. Notabene, 12. AML Watcher, Sumsub, 13. BSHK, 14. Coinpedia, The Legal 500, 15. AdvocateTurkey, 16. The European Banks, Cointelegraph, UEEx Technology, 17. CoinATMRadar, Bitcoin ATM Map, 18. Disruption Banking, DataWallet, Crypto Dispensers, 19. DataMine, 20. International Trade Administration, 21. Wikipedia, JJR LAB, CSIA, 22. Chambers and Partners, 23. Fintax, Phemex & The Block, 24. 99Bitcoins, CoinLaw & Digital Watch Observatory

Legal Disclaimer: This blog article by GENERAL BYTES is for informational purposes only and does not guarantee absolute accuracy due to the rapid and unpredictable changes in Turkish legislation. It does not constitute formal legal, financial, or investment advice.