Turkey’s Crypto Boom: Digital Lifeline Amid Lira’s Decline

As the Turkish lira’s value collapses and inflation soars, millions have turned to cryptocurrencies to protect their savings. Turkey is now among the world’s top four nations for crypto trading volumes, with a market worth billions.

A Multi-Billion Dollar Market Born of Necessity

Turkey’s crypto industry has grown far beyond a niche. Statista estimates the sector will generate roughly $2.2 billion in revenue this year, rising to $2.6 billion by 2026 — a 15.3% annual growth rate. User numbers are projected at 24–26 million, nearly one-third of the population.

This surge isn’t the result of flashy marketing. Years of economic pain — notably high inflation and a lira that lost over 450% of its purchasing power between 2020 and 2024 — pushed citizens to seek alternatives. When money loses value, preserving wealth becomes paramount, and crypto provided an answer.

Bitcoin and Stablecoins Take the Lead

Lira-to-crypto trading volume has skyrocketed more than 800% since 2021, placing Turkey fourth globally for crypto transaction volume. Dollar-pegged stablecoins are particularly popular. In 2024, the USDT/TRY pair topped Binance’s trading charts with around $22 billion in volume. Over half of Bitcoin trades on Turkey’s largest exchange are now paired with USDT.

Young, Bold, and Increasingly Female

The majority of Turkey’s crypto investors are aged 18–44. According to KuCoin, 52% of Turkish adults aged 18–60 have invested in cryptocurrencies, up from 40% in late 2021. Investors aged 31–44 make up 48% of the total, with 37% in the 18–30 bracket.

Female participation is noteworthy: 47% of women aged 18–30 are crypto investors, along with 37% of those over 45 — a challenge to the traditionally male-dominated investment sphere. Investment goals include long-term wealth building (58%), value preservation (37%), and portfolio diversification (25%). Bitcoin leads holdings at 71%, followed by Ethereum (45%) and stablecoins (33%).

Exchanges and Banks Drive Adoption

The Turkish market blends major local exchanges (BtcTurk, Paribu, Bitci) with global players’ local arms (Binance TR, Bybit Türkiye, OKX, KuCoin). Turkish-language interfaces and lira pairs make crypto accessible to everyday users.

Binance TR led Q1 2024 downloads with 213,000 installs in one week, while Paribu and BtcTurk each reported hundreds of thousands of active monthly users. Even mainstream banks are now in the game: in late 2023, Akbank acquired crypto firm Stablex, and Garanti BBVA launched a custodial wallet app for BTC, ETH, and USDC. Four of Turkey’s top ten banks now offer crypto-related services.

From Ban to Licensing

In April 2021, Turkey’s central bank banned crypto payments. By mid-2024, the government shifted to regulation, passing a law that brought crypto asset service providers under the Capital Markets Board (CMB). This included licensing requirements, anti–money laundering (AML) and know-your-customer (KYC) compliance, plus an annual fee of about 2% of trading income.

Further rules introduced in March 2025 set high capital requirements (TRY 150 million for exchanges), asset segregation, transaction monitoring, and robust internal controls. Officials say the framework is designed to meet Financial Action Task Force (FATF) standards and remove Turkey from the “gray list.”

The CBDC Question

Looking ahead, analysts expect market consolidation, with larger exchanges and banks expanding into custody, tokenization, and derivatives. A Digital Turkish Lira — Turkey’s central bank digital currency (CBDC) — remains under discussion. If implemented, it could reshape stablecoin demand and redefine crypto’s role as a store of value.

Turkey’s crypto boom has evolved from a chaotic retail phenomenon into a regulated, institutionally supported market. It remains fast-moving and risky — but far more stable and credible than just a few years ago.

Source: Disruption Banking

IMPORTANT DISCLOSURE: PA Turkey intends to inform Turkey watchers with diverse views and opinions. Articles in our website may not necessarily represent the view of our editorial board or count as endorsement.

Follow our English language YouTube videos @ REAL TURKEY: https://www.youtube.com/channel/UCKpFJB4GFiNkhmpVZQ_d9Rg
And content at Twitter: @AtillaEng
Facebook: Real Turkey Channel: https://www.facebook.com/realturkeychannel/