Turkiye’s long-awaited crypto legislation — submitted to parliament in May 2024 — may serve more than just the digital asset industry. Experts believe that the proposed law could also provide a legal framework to help combat illegal betting platforms that rely heavily on cryptocurrencies for transactions.
Bill Overview: Supervision and Licensing
The draft law, introduced by the ruling AKP, focuses on bringing crypto asset providers under the supervision of the Capital Markets Board (SPK). If enacted, crypto exchanges and wallet services will need licenses to operate in Turkiye and must comply with domestic regulations, including consumer protection and Anti-money laundering (AML) standards.
The legislation also includes penalties for unauthorized platforms and establishes pathways for cross-border cooperation on crypto-related financial crimes.
Illegal Betting and Crypto: A Hidden Link
Illegal betting platforms operating in Turkiye — many based offshore — often use cryptocurrencies for deposits, withdrawals, and internal transfers. These platforms exploit the anonymity and regulatory gaps of the crypto ecosystem to move large volumes of money without detection.
The new law aims to close this gap by giving authorities more tools to track crypto-based transactions and enforce financial transparency. Regulatory analysts note that even partial enforcement could make it significantly harder for unlicensed betting platforms to operate within Turkiye.
Balancing Innovation and Enforcement
While the primary goal of the law is to align Turkiye with global crypto standards and avoid FATF (Financial Action Task Force) blacklisting, its secondary effects may strengthen efforts against digital financial crimes — including illegal gambling.
Critics, however, warn that overregulation may stifle legitimate blockchain innovation. The government argues that the bill balances innovation with national security and financial integrity.
What’s Next?
If passed, crypto service providers will have a transition period to obtain licenses and implement compliance systems. Authorities are expected to follow up with more targeted legislation to address sectors — like gambling — that misuse digital finance.
In a market where illegal betting is estimated to be worth billions of lira annually, Turkiye’s crypto regulation could become an unexpected tool in curbing one of the country’s most persistent underground economies.