Not all crypto-assets serve the same purpose. Some crypto-assets are used for investment purposes, while others may function as means of payment. Some are designed to provide access to a specific service, product or digital ecosystem. This last category is particularly relevant for the concept of utility crypto-assets under Turkish law.

The main statutory framework on crypto-assets in Turkey was introduced through Law No. 7518, which amended the Turkish Capital Markets Law. Although the law defines crypto-assets, it does not provide a detailed classification of all crypto-asset types. However, the general reasoning of the law refers to certain categories of crypto-assets. One of these categories is utility crypto-assets.

What Are Utility Crypto-Assets?

In the general reasoning of Law No. 7518, utility crypto-assets are described as crypto-assets that provide the right to access a service or product.

Based on this explanation, utility crypto-assets may be understood as digital assets created not primarily to provide an investment return, but to allow their holders to benefit from a specific service or access a particular product.

For example, a crypto-asset that enables access to certain features of a digital platform, the use of a software service, digital content, or a specific function within a digital ecosystem may be considered a utility crypto-asset.

Main Feature of Utility Crypto-Assets

The main feature of utility crypto-assets is that they provide access to a specific economic or digital benefit. This benefit may be connected to a product, service, platform, digital content or technical infrastructure.

The decisive issue is what the crypto-asset actually provides to its holder. If the asset gives its holder access to a service or product, rather than merely creating an expectation of financial gain, it may be assessed as a utility crypto-asset.

However, this assessment must be made separately for each case. Merely naming a crypto-asset as a “utility token” or “utility crypto-asset” is not sufficient to determine its legal nature. The rights granted by the asset, the purpose of issuance, the field of use and its economic function should be evaluated together.

Absence of a Detailed Statutory Definition

The text of Law No. 7518 does not contain a detailed statutory definition of utility crypto-assets. The concept is mainly understood through the explanations provided in the general reasoning of the law.

This shows that utility crypto-assets are not yet subject to a detailed special regime under Turkish law. The law defines crypto-assets in general, but it does not directly regulate subcategories such as utility crypto-assets in detail.

Nevertheless, the reference to this concept in the general reasoning is important. It shows that the Turkish legislator recognizes that crypto-assets may have different functions and should not all be treated as a single uniform category.

Difference Between Utility Crypto-Assets and Investment-Oriented Crypto-Assets

Utility crypto-assets should be distinguished from investment-oriented crypto-assets. In utility crypto-assets, the main function is access to a service or product. In investment-oriented crypto-assets, users often acquire the asset with the expectation of value appreciation, income generation or economic return.

This distinction is important. If a crypto-asset is marketed as an investment, creates an expectation of profit or grants rights similar to capital market instruments, its legal characterization may change.

Therefore, the following questions may become relevant when assessing a utility crypto-asset:

Does the crypto-asset actually provide access to a service or product?

Is the user acquiring it mainly for the purpose of using a service?

Is the asset offered with an investment return expectation?

Does the issuer create an expectation of economic profit for users?

The answers to these questions may determine how the relevant crypto-asset should be assessed under Turkish law.

Importance of the Term “Asset”

The general reasoning of Law No. 7518 uses the expression “utility crypto-assets”. The use of the term “asset” is significant because it reflects a broad approach.

This wording suggests that the regulatory framework under Turkish law may develop without being limited to a particular technical form or terminology. In other words, the legal assessment should not depend only on whether a digital value is called a “token”, “coin” or another technical term.

What matters is the function of the asset. Therefore, utility crypto-assets should not be understood as limited only to a certain type of blockchain-based token. In the future, digital assets created through different technologies but providing access to a service or product may also be assessed within this framework.

Importance for Consumer and User Rights

Utility crypto-assets are important not only from the perspective of capital markets law, but also in terms of consumer and user rights. This is because such assets are often acquired for the purpose of accessing a product or service.

In this context, several legal issues may arise. These include whether the promised service is actually provided, the scope of the access right, the duration of use, refund possibilities, technical failures, closure of the platform or termination of the service.

For example, if a platform announces that holders of a certain crypto-asset will be granted access to a specific digital service in the future, failure to provide that service or providing it incompletely may lead to legal liability.

For this reason, clear information should be provided during the issuance and use of utility crypto-assets.

Platforms and Service Providers

Platforms and service providers play an important role in systems where utility crypto-assets are used. The user usually does not merely hold the crypto-asset technically, but also uses it within a specific platform or digital ecosystem.

Therefore, platform terms, user agreements, technical documents, access conditions and usage limitations should be carefully drafted.

For utility crypto-assets, the following issues may be particularly important:

Which service the user has the right to access,

How long the access right will last,

Whether the access right is transferable,

What rights the user will have if the platform terminates the service,

How liability will be determined in the event of technical failure or security breach.

If these matters are not clearly regulated, disputes may arise between users and platforms.

Advertising and Promotional Activities

The language used in the promotion of utility crypto-assets is also legally important. Even if a crypto-asset is designed for access to a service, promotional statements emphasizing investment returns may affect its legal assessment.

For this reason, expressions such as “profit”, “increase in value”, “investment opportunity” or “guaranteed return” should be used with caution. If the real purpose of a utility crypto-asset is to provide access to a service or product, the promotion should remain consistent with that function.

Otherwise, a crypto-asset presented as a utility asset may in practice be marketed as an investment instrument. This may create different legal consequences under capital markets law, consumer law and rules on unfair commercial practices.

Need for Further Regulation under Turkish Law

Utility crypto-assets are one of the areas that may require further regulation under Turkish law. The reference to this concept in the general reasoning of Law No. 7518 is an important starting point. However, the scope of the concept, its legal consequences and the situations in which specific rules will apply are not yet fully clear.

Further regulation may be needed on issues such as:

How utility crypto-assets will be identified,

How the right to access a service or product will be defined,

The scope of information to be provided to users,

The liability of platforms,

The rules applicable if utility crypto-assets are marketed as investments,

Transfer, custody and refund issues,

The relationship between consumer law and crypto-asset regulation.

Clear rules in these areas would contribute to the protection of users and to greater legal certainty in the crypto-asset market.

Conclusion

Utility crypto-assets are important under Turkish crypto-asset law because they are generally linked to access to a service or product. Although Law No. 7518 does not regulate this concept in detail in its statutory text, the general reasoning of the law refers to utility crypto-assets.

This shows that the Turkish legislator recognizes that crypto-assets may have different functions. Utility crypto-assets differ from investment-oriented crypto-assets because their main function is to provide access to a service or product.

However, simply calling a crypto-asset a “utility token” is not sufficient. Its legal nature should be assessed by considering the rights it grants, its purpose of use, promotional language, economic function and the promises made to users.

More detailed regulation of utility crypto-assets under Turkish law would be important for the protection of users and for ensuring legal certainty for market participants.