The possible use of crypto-assets as a means of payment has raised important questions under Turkish law. One of the most significant issues is the relationship between crypto-assets and electronic money. This question becomes particularly relevant where certain crypto-assets are designed for payment purposes or are linked to the value of an official currency.

Under Turkish law, electronic money and crypto-assets do not belong to the same legal category. Electronic money is regulated under Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions. Crypto-assets, on the other hand, were introduced into the statutory framework mainly through Law No. 7518, which amended the Turkish Capital Markets Law No. 6362.

Therefore, even though electronic money and some crypto-assets may have similar economic functions, they should not be treated as identical legal concepts under Turkish law.

What Is Electronic Money under Turkish Law?

Electronic money is a specifically regulated value under Turkish law. In general terms, it may be described as a monetary value issued in exchange for funds, stored electronically and used for payment transactions.

The issuance of electronic money is not a freely performable activity. It may only be carried out by institutions that meet the legal requirements and obtain the necessary authorization. Electronic money institutions are subject to a specific regulatory and supervisory regime.

This means that electronic money is different from cash, but it is still a legally regulated payment value. Electronic money institutions are subject to rules on authorization, capital requirements, supervision, operational permits and the protection of customer funds.

Are Crypto-Assets Electronic Money?

Whether crypto-assets may be considered electronic money has long been discussed under Turkish law. In particular, crypto-assets such as Bitcoin are sometimes confused with electronic money because they may be used in practice for payment or transfer purposes.

However, under Turkish law, crypto-assets cannot automatically be classified as electronic money. The legal status of a crypto-asset depends on its structure, issuance mechanism, connection with official currency, the existence of an issuer and whether the legal requirements for electronic money are met.

The fact that a crypto-asset can be transferred or used in commercial practice does not by itself make it electronic money. A crypto-asset may have economic value without having the legal status of electronic money.

Crypto-Assets Are Not Official Currency

Crypto-assets are not recognized as official currency under Turkish law. They may have economic value, they may be bought and sold, and they may be transferred through digital networks. However, this does not mean that they have the same legal status as the Turkish Lira or any other official currency.

This distinction is important. Having market value and being legally recognized as money are not the same thing.

The definition introduced by Law No. 7518 also supports this distinction. Under the amended Capital Markets Law, crypto-assets are defined as intangible assets that can express value or rights. This definition recognizes that crypto-assets may have legal and economic relevance, but it does not classify them directly as money or electronic money.

The Concept of Electronic Money Crypto-Assets

The statutory text of Law No. 7518 does not expressly define “electronic money crypto-assets”. However, the general reasoning of the Law refers to this concept. In the general reasoning, electronic money crypto-assets are described as crypto-assets designed for electronic payment purposes.

This reference is important because it shows that the Turkish legislator is aware of the payment function that certain crypto-assets may have. Nevertheless, this does not mean that every crypto-asset designed for payment purposes will automatically qualify as electronic money.

The decisive point is this: a crypto-asset being designed for payment purposes does not by itself make it electronic money within the meaning of Law No. 6493. The legal requirements for electronic money must be assessed separately.

Difference between Electronic Money and Electronic Money Crypto-Assets

The main difference between electronic money and electronic money crypto-assets lies in their legal status and issuance regime.

Electronic money is a regulated value under Law No. 6493. It may be issued only by authorized institutions and within the limits of the applicable regulatory framework. The issuing institution must comply with the relevant rules on customer funds, authorization, supervision and operational requirements.

Electronic money crypto-assets, on the other hand, are referred to in the general reasoning of Law No. 7518 as crypto-assets designed for payment purposes. However, their legal regime has not yet been defined in detail in the statutory text.

For this reason, electronic money crypto-assets remain an area that may require further clarification under Turkish law.

Payment Function Alone Is Not Sufficient

The fact that a crypto-asset is used for payment purposes or is technically transferable does not automatically make it electronic money.

Under electronic money law, several elements are important. These include whether the value is issued in exchange for funds, the legal status of the issuer, the protection of customer funds, its use in payment transactions and whether it is accepted by persons other than the issuer.

Crypto-assets may operate under very different structures. Some may be decentralized, some may be issued by identifiable entities, some may be linked to reserve assets, and others may fluctuate freely in value. Therefore, the payment function of a crypto-asset is not sufficient on its own to determine its legal nature.

This distinction is particularly important for payment service providers, electronic money institutions and crypto-asset service providers.

Electronic Money Institutions and Crypto-Asset Service Providers

Electronic money institutions and crypto-asset service providers are subject to different legal regimes under Turkish law.

Electronic money institutions are regulated under Law No. 6493 in relation to payment services and the issuance of electronic money. Crypto-asset service providers are regulated under the Turkish Capital Markets Law, as amended by Law No. 7518.

Therefore, being an electronic money institution does not automatically mean that an entity is also a crypto-asset service provider. Similarly, the activities of a crypto-asset service provider cannot automatically be treated as electronic money issuance or payment services.

However, technological developments may increasingly bring these two areas closer together. This is especially relevant for crypto-assets used for payment purposes, stable crypto-assets and digital wallet services.

Need for Further Regulation under Turkish Law

Electronic money crypto-assets are one of the areas where Turkish law may need further clarification. The fact that the general reasoning of Law No. 7518 refers to this concept is important. However, the absence of a detailed statutory definition may create uncertainty in practice.

In the future, clearer rules may be needed on questions such as:

Which crypto-assets designed for electronic payment purposes will be subject to special regulation?

Under what conditions may a crypto-asset be classified as electronic money?

May crypto-asset service providers offer payment services?

May electronic money institutions operate in the crypto-asset sector?

How should stable crypto-assets be assessed under electronic money law?

Which legal regime will apply to the protection of customer funds and crypto-assets?

These questions show that the boundary between payment services law and crypto-asset law should be further clarified.

Conclusion

Electronic money crypto-assets represent an important intersection between electronic money law and crypto-asset regulation in Turkey. Although Law No. 7518 does not regulate this concept in detail, its general reasoning refers to crypto-assets designed for electronic payment purposes.

Under Turkish law, electronic money is a separate legal category regulated under Law No. 6493. Crypto-assets, on the other hand, are regulated mainly within the framework of the Capital Markets Law following the amendments introduced by Law No. 7518.

For this reason, not every crypto-asset can be treated as electronic money. The use of a crypto-asset for payment purposes is not sufficient on its own. Its issuance structure, connection with funds, payment function, issuer status, user rights and regulatory permissions must be assessed together.

In the coming period, the legal boundaries between electronic money institutions, crypto-asset service providers and payment-oriented crypto-assets are likely to become increasingly important under Turkish law.