Illegal Betting Crackdown Hits Turkey’s Fintech Industry

The Central Bank of the Republic of Turkey (CBRT) has temporarily suspended the operating licenses of Sipay Elektronik Para ve Ödeme Hizmetleri A.Ş. and Vepara Elektronik Para ve Ödeme Hizmetleri A.Ş. under Law No. 6493, which governs payment and electronic money institutions. The two companies confirmed that user balances remain secure, while the decision is believed to be part of a broader crackdown on illegal online betting transactions in the country.

The CBRT has issued a new regulatory decision concerning Sipay and Vepara, both active in Turkey’s electronic money and payment services sector.

Under the provisions of the Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions (Law No. 6493), both companies have had their authorizations to accept deposits, process withdrawals, and issue electronic money temporarily suspended.

Following the decision, both companies released official statements assuring customers that funds are protected and that some licensed services continue to operate without interruption.

Joint Statement from Sipay and Vepara

After the CBRT’s decision, both Sipay and Vepara published similar announcements confirming the development.

Sipay stated that its license to provide services under Articles 12 (b) and (c) and Article 18 (2) of Law No. 6493 had been temporarily suspended. The company emphasized that “activities covered by our (a), (ç), (e), (f), and (g) licenses continue as usual. All your funds and transactions remain fully secured.”

Vepara likewise confirmed that certain authorizations were temporarily revoked under the same legal articles and advised users to withdraw funds:

“You can transfer your available balance to your own bank account or contact us at [email protected] for support.”

Both companies highlighted that customer funds remain safe and that operations in other licensed areas continue as normal.

Other Electronic Money Institutions Under Restriction

The following companies have also had their operating licenses temporarily suspended or restricted by the Central Bank of Turkey under Law No. 6493:

• Fzypay Elektronik Para ve Ödeme Hizmetleri A.Ş. – License temporarily suspended.

• İninal Ödeme ve Elektronik Para Hizmetleri A.Ş. – Placed under TMSF (Savings Deposit Insurance Fund) trusteeship on March 14, 2025.

• Paladyum Elektronik Para ve Ödeme Hizmetleri A.Ş. – Subject to temporary suspension.

• Papara Elektronik Para A.Ş. – Placed under TMSF trusteeship on May 27, 2025.

• ParaQR Elektronik Para ve Ödeme Hizmetleri A.Ş. – License temporarily suspended.

• Parolapara Elektronik Para ve Ödeme Hizmetleri A.Ş. – License temporarily suspended.

• Payco Elektronik Para ve Ödeme Hizmetleri A.Ş. – Among the companies affected by the CBRT decision.

• Sipay Elektronik Para ve Ödeme Hizmetleri A.Ş. – License suspended for services under Articles 12 (b), (c) and 18 (2).

• Vepara Elektronik Para ve Ödeme Hizmetleri A.Ş. – License suspended under the same provisions.

Links Between the Decision and Illegal Betting

For years, illegal online betting platforms—which are blocked in Turkey—have relied on local e-wallet providers to handle deposits and withdrawals from Turkish users. Almost every unlicensed betting website listed options such as Papara, PayFix, Payco, and ParaQR among their payment methods. These e-wallets allowed instant transfers without strict identity verification, making them the preferred channel for funding betting accounts.

Financial sources suggest that the CBRT’s recent wave of suspensions aims to cut off these payment routes and dismantle the financial infrastructure of illegal betting networks. Investigations reportedly uncovered large-volume and repetitive betting-related transactions processed through several of these institutions, in violation of anti-money-laundering (AML) and financial compliance rules outlined in Law No. 6493. As a result, many of the companies facing temporary suspension are believed to be those linked—directly or indirectly—to illegal betting flows.

Papel Remains the Only Active E-Wallet

With these restrictions, nearly all e-wallet operators in Turkey are now under investigation or temporary suspension.
According to industry sources, Papel Elektronik Para ve Ödeme Hizmetleri A.Ş. is currently the only e-wallet still operational and accessible for transactions on betting platforms. However, it remains unclear whether Papel will also face regulatory scrutiny in the near future.

Experts note that the CBRT has adopted a zero-tolerance policy toward compliance breaches, particularly concerning Know Your Customer (KYC) verification and suspicious transaction reporting (MASAK) obligations. As a result, all licensed electronic money institutions are expected to tighten their regulatory frameworks and strengthen internal controls in the coming months.

Market Impact and Outlook

The wave of suspensions has shaken Turkey’s fintech and e-wallet ecosystem, disrupting both startups and everyday users who relied on these platforms for fast, low-cost money transfers. In the short term, the sector is experiencing slowdowns and uncertainty, as users seek alternative payment channels.

Industry experts argue that the CBRT’s measures may cause a temporary market contraction, but in the long term, they could bring about greater transparency and institutional trust. As fintech companies overhaul their compliance systems, the market is expected to move toward stronger monitoring mechanisms, improved transaction traceability, and robust KYC standards.

Cracking down on illegal betting-related payment flows is seen as a crucial step for the security and credibility of Turkey’s digital financial infrastructure. Analysts believe that once this process is complete, Turkey’s electronic money market will emerge more transparent, regulated, and resilient—better aligned with global fintech standards.