Founder
January 20, 2026
17 min read
Peer-to-Peer (P2P) crypto asset trading is a trade model where crypto assets are bought and sold directly between users without the intermediation of a centralized exchange. It is widely used on platforms such as Binance P2P, LocalBitcoins, and Paxful.
Key Features:
Direct Matching: Buyers and sellers transact directly with each other.
Flexible Payment: Various payment methods such as bank transfer, cash, and digital wallets.
Merchant System: Users with high transaction volumes can earn "Merchant" status.
Security: The platform provides escrow services to ensure secure transactions.
Critical Changes in the 2024-2026 Period:
2024: Crypto asset regulations were added to the Capital Markets Law (Law No. 7518).
2024: A ban on "acting on behalf of others" was introduced for P2P platforms.
2025: MASAK tightened measures came into force.
2026: Declaration requirement for money transfers began.
Important Notice: This guide is for general information purposes only and does not constitute legal advice. Every situation is unique, and expert legal counsel must be sought.
If your activity bears the character of a "regular occupation, commercial or professional activity," then yes. However, transactions made "for your own wallet" fall within the scope of exceptions.
According to the Capital Markets Law (with the 2024 amendments), obtaining permission from the SPK is mandatory for Crypto Asset Service Providers to commence operations. The critical question for individuals doing P2P trading is: Does your activity fall under the definition of a "Crypto Asset Service Provider"?
The "For Own Wallet" Exception:
According to the SPK Communiqué, transactions made for your own wallet do not require permission. To apply this exception:
✅ You must trade only for your own wallet.
✅ You must not trade on behalf of others.
✅ You must not engage in brokerage activities.
✅ Your activity must not carry the character of a "regular occupation, commercial or professional activity."
When Am I Considered a "Regular Occupation"?
If several of the following criteria exist, your activity may be evaluated as a "regular occupation":
High transaction volume (Monthly 500,000 TL+)
Frequent trading (Daily 5+, Weekly 20+ transactions)
Holding a Merchant badge
Generating regular income
Sales transactions exceeding purchase transactions (indicating a commercial character)
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Penalties:
3-5 years imprisonment
5,000-10,000 days of judicial fine
These penalties apply to real and legal persons found to be operating as unauthorized Crypto Asset Service Providers.
Other Measures SPK Can Implement:
Blocking of websites
Removal of content
Stopping the activity
Critical Regulation: With the SPK Principal Decision (September 19, 2024), "trading on behalf of others" on P2P platforms was banned.
Consequences:
This activity can be evaluated as unauthorized crypto asset service provision.
Criminal sanctions under Articles 99/A and 109/A of the SPK regulations may be applied.
It was mandatory to terminate these activities by 08.11.2024.
Important: Transactions made only "for your own account" are not within the scope of this ban.
According to the SPK Principal Decision, the criterion of "working in a structure similar to an exchange office" includes:
Regular trading
Profit motive
Commercial appearance
High transaction volume
If your activity fits these criteria, it is evaluated under Articles 99/A and 109/A of the SPK Law, and the requirement for permission arises.
Risk Level: HIGH
If you have concerns about SPK permission requirements, carry a risk of unauthorized activity, or want to receive consultancy regarding the risk of being evaluated as a "regular occupation," you can contact Genesis Hukuk.
Short Answer: Banks may evaluate your P2P trading transactions as suspicious transactions and report them to MASAK. In this case, your account may be blocked.
Suspicious Transaction Criteria:
According to MASAK regulations, the following situations may be evaluated as suspicious transactions:
High transaction volume: High volume with no apparent reasonable legal or economic purpose.
Unusual frequency: Frequency of transactions incompatible with the customer profile.
Merchant badge: Holding a Merchant badge can be considered an indicator of commercial activity.
Commercial activity with a tourist residence permit: Appearance of commercial activity while holding a tourist residence permit.
Important: Suspicious transaction reporting is done regardless of monetary limits. Any transaction fitting the suspicious transaction criteria must be reported, regardless of the amount.
Identity Verification Requirement:
Identity verification is mandatory for transactions with a volume of 15,000 TL or more. This obligation applies to obliged parties (banks, crypto asset service providers).
Regarding P2P Trading:
Single transaction under 15,000 TL: No identity verification obligation (though banks may request it per their policies).
Single transaction of 15,000 TL or more: Identity verification is mandatory.
Linked transactions: If the total of linked transactions exceeds 15,000 TL, identity verification is mandatory.
Declaration Requirements (2026 New Regulation):
Transactions between 200,000 TL - 2,000,000 TL:
Banks provide transaction type options to the customer.
These options include "crypto/digital asset".
Transactions between 2,000,001 TL - 20,000,000 TL:
Filling out a Cash Transaction Declaration Form is mandatory.
Transactions over 20,000,000 TL:
The Cash Transaction Declaration Form must be filled out with a detailed explanation and supporting documents attached.
Is Declaration Mandatory for Bank Transfers?
Yes. You may need to declare the nature of the transaction for bank transfers as well. Banks provide transaction type options to their customers, which include the "crypto/digital asset" option.
Linked Transactions:
Even if you make small individual transactions, if they are considered linked, the total amount is taken into account, and a declaration obligation may arise. Transactions made within the same day, week, or month for the same purpose may be considered linked.
Criminal Sanction:
If trading on behalf of others, this situation must be notified in writing. Otherwise:
6 months - 1 year imprisonment
Judicial fine of up to 5,000 days
Important: There is a ban on "trading on behalf of others" under both SPK and MASAK regulations. Please refer to the Basic Concepts section for a detailed explanation.
Waiting Period for Crypto Withdrawal Transactions:
First withdrawal transactions: 72-hour waiting period.
Subsequent withdrawal transactions: 48-hour waiting period.
USDT Withdrawal Limits:
Daily limit: 3,000 USD
Monthly limit: 50,000 USD
These limits apply to stable crypto assets such as USDT and USDC.
Transaction Description Requirement:
A transaction description of at least 20 characters must be provided for all crypto asset transfer transactions.
Risk Level: HIGH
If you have experienced a MASAK block due to high-volume transactions, if your bank account has been blocked, or if you have concerns about suspicious transaction reporting, you can contact Genesis Hukuk for the legal management of the process.
Short Answer: If your activity bears the character of "commercial gain," yes. However, this situation significantly increases the residence permit risk, especially for foreign traders.
Evaluation as Commercial Gain:
Under the Income Tax Law, income derived from P2P trading may be evaluated as commercial gain if it exhibits the character of a "regular occupation."
Declaration Obligation:
If income from P2P trading is evaluated as commercial gain:
Annual declaration: Annual income tax return
Provisional tax: Provisional tax payment
VAT: VAT liability (under certain conditions)
Important Warning: Failure to fulfill the declaration obligation may constitute the crime of tax evasion.
IMPORTANT WARNING: Filing a tax return signifies the official admission of commercial activity and significantly increases the residence risk.
Especially for foreign traders:
It is not recommended to file a tax return without correcting the residence status.
Legal consultancy must be obtained before filing a tax return.
Residence status needs to be corrected first.
Filing a tax return implies the official acceptance of commercial activity and significantly increases the risk of residence cancellation.
Calculation Method:
Transaction volume: Total transaction volume
Profit margin: Difference between buying and selling prices
Potential gain: Calculated based on transaction volume and profit margin
Example: 2,000,000 TL transaction volume, 2% profit margin = 40,000 TL potential gain.
Risk Level: Medium-High
If you are undecided about filing a tax return, concerned about residence risk, or want to correct your residence status before filing a tax return, you can contact Genesis Hukuk.
Short Answer: Yes. Engaging in commercial activity with a tourist residence permit creates the risk of cancellation of the residence permit and deportation.
Legal Basis:
According to the Law on Foreigners and International Protection, a residence permit cannot be used outside its purpose. If it is determined that the residence permit is used outside its purpose:
The residence permit is cancelled.
The relevant foreigner is deported.
Regarding P2P Trading:
Tourist residence permit: Tourist residence permits are not granted for commercial activity.
P2P trading: P2P trading can be evaluated as commercial activity.
Residence cancellation: Using the residence permit outside its purpose creates the risk of residence cancellation and deportation.
Important: It is prohibited to engage in commercial activity with a tourist residence permit. Since P2P trading can be evaluated as commercial activity, this creates a direct risk of residence cancellation.
Independent Work:
Under the International Labor Force Law, foreigners working in Turkey generally require a work permit. P2P trading may carry the character of independent work.
The Situation:
Work permit: Independent work may require a work permit.
Practical difficulty: Obtaining a work permit specifically for P2P trading may not be practical.
Risk: Conducting P2P trading without a work permit creates a risk of residence cancellation.
Risks:
Residence cancellation: Commercial activity with a tourist residence permit creates a risk of residence cancellation.
Deportation: Cancellation of residence creates a risk of deportation.
Work permit: Operating without a work permit creates a risk of residence cancellation.
Tax declaration: Filing a tax return implies the official acceptance of commercial activity and increases the residence risk.
Risk Level: VERY HIGH (Most Critical Risk)
Urgent Legal Consultancy: If you carry a risk of residence permit cancellation or deportation, are doing P2P trading with a tourist residence permit, or want to correct your residence status, you can contact Genesis Hukuk for urgent legal consultancy.
Turkish Citizens:
There is no residence risk.
SPK, MASAK, and tax law risks exist (refer to the relevant sections above).
Companies and Legal Entities:
Must obtain permission from the SPK.
Subject to MASAK obligations.
Evaluated within the scope of tax law.
This section details concepts of critical importance for P2P trading. These concepts were briefly mentioned in the questions section above, but detailed explanations are provided here.
Legal Definition:
According to the SPK Communiqué, it is stated that "obtaining permission from the Board is mandatory for crypto asset services and activities to be performed as a regular occupation, commercial or professional activity."
Elements of the Concept:
Regularity: Performing the activity within a certain order, continuously or repeatedly.
Commercial Character: Performing the activity with a commercial purpose, aiming to make a profit.
Professional Activity: The activity having a professional nature.
Evaluation Criteria for P2P Trading:
Transaction Volume: High transaction volume is an indicator of commercial character.
Transaction Frequency: Frequent trading is an indicator of regular occupation.
Merchant Badge: Holding a Merchant badge is an indicator of commercial activity.
Buy-Sell Balance: Sales transactions exceeding purchase transactions is an indicator of commercial character.
Income Generation: Generating regular income from the activity is an indicator of commercial activity.
Important: If your activity is evaluated as a "regular occupation, commercial or professional activity," the "for own wallet" exception cannot be applied, and Board permission is required.
What is a Merchant Badge?
A Merchant badge is a status given to users with high transaction volumes on P2P platforms. This status can be evaluated as an indicator that the user is engaged in commercial activity.
Risk Assessment:
Holding a Merchant badge increases the following risks:
In terms of SPK: Risk of being evaluated as a "regular occupation."
In terms of MASAK: Risk of being evaluated as a suspicious transaction.
In terms of Tax: Risk of being evaluated as commercial gain.
Suggestion: Giving up the use of a Merchant badge or keeping it at a lower level may reduce the risks.
In Terms of SPK:
With the SPK Principal Decision (September 19, 2024), "trading on behalf of others" on P2P platforms was banned. This ban covers the following situations:
Performing transactions in one's own name but for the account of another person.
Executing this activity as a regular occupation, commercial, or professional activity.
Consequences:
This activity can be evaluated as unauthorized crypto asset service provision.
Criminal sanctions under Articles 99/A and 109/A of the SPK regulations may be applied.
In Terms of MASAK:
Under MASAK legislation, if trading is conducted on behalf of another person:
It is mandatory to notify this situation in writing.
Otherwise, 6 months - 1 year imprisonment or a judicial fine of up to 5,000 days is stipulated.
Important: There is a ban on "trading on behalf of others" under both SPK and MASAK regulations. Only transactions made "for your own account" are excluded from this ban.
Legal Basis:
According to the SPK Communiqué, transactions made for your own wallet do not require permission. For this exception to apply, all of the following conditions must be met:
Transaction with parties other than customers: The transaction must be made with parties other than the customers of a crypto asset service provider.
Without the purpose of providing any crypto asset service: The transaction must not be made with the purpose of providing crypto asset services.
For their own wallets: The transaction must be made for one's own wallet.
Buying, selling, and transfer transactions: The transaction must be a buying, selling, or transfer transaction related to crypto assets.
Important: This exception must be interpreted narrowly. Exceptions are deviations from the general rule and cannot be interpreted broadly. Therefore:
The exception applies only to transactions made for one's own wallet.
Transactions made on behalf of others are not within the scope of the exception.
Brokerage activity is not within the scope of the exception.
Transactions bearing the character of a regular occupation, commercial, or professional activity may fall outside the scope of the exception.
Legal Basis:
According to the SPK Principal Decision, the criterion of "working in a structure similar to an exchange office" includes:
Regular trading: Continuously performing transactions within a certain order.
Profit motive: Aiming to make a profit from transactions.
Commercial appearance: The activity exhibiting a commercial appearance.
High transaction volume: Conducting high-value and frequent transactions.
If your activity fits the "working in a structure similar to an exchange office" criterion, it is evaluated under Articles 99/A and 109/A of the SPK Law, and the requirement for permission arises.
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You can apply the following practical suggestions to protect yourself from the risks detailed in the sections above:
Trade only for your own account: Do not trade on behalf of or for the account of others.
Do not engage in brokerage activities: Do not offer crypto asset services to others.
Limit transaction volume: Keep your monthly transaction volume low (below 500,000 TL).
Reduce transaction frequency: Do not exceed limits like 2-3 daily, 10-15 weekly, or 40-60 monthly transactions.
Give up using the Merchant badge: Or keep it at a lower level.
Maintain the buy-sell balance: Transactions should bear an "investment" character, not a "trade" character.
Keep single transaction amounts under 15,000 TL: To avoid the mandatory identity verification obligation.
Keep monthly transaction volume under 200,000 TL: To avoid the mandatory declaration of nature obligation.
Avoid linked transactions: Take into account the total of transactions made within the same day, week, or month.
Pay attention to USDT withdrawal limits: Daily 3,000 USD, Monthly 50,000 USD.
Adhere to the 48-hour/72-hour rule: 72-hour waiting period for the first withdrawal, 48 hours for subsequent withdrawals.
Write transaction descriptions correctly: At least 20 characters; avoid explicit expressions like "crypto asset buying-selling" if possible to prevent automatic flagging.
Correct your residence status: Critical especially for foreign traders.
Get legal consultancy before filing a tax return: To avoid increasing the residence risk.
Keep transaction records: Binance transaction history, bank receipts.
Be careful with bank descriptions: Use general expressions like "Investment transaction" or "Digital asset transaction."
Do not engage in commercial activity with a tourist residence permit: Risk of residence cancellation.
Obtain a work permit: A work permit may be required for independent work.
Correct your residence status: Obtain a residence permit suitable for commercial activity.
Get legal consultancy before filing a tax return: To avoid increasing the residence risk.
Beyond P2P, explore the broader legal challenges and investor protection issues prevalent in the crypto-asset market, and understand where legal accountability stands.
P2P crypto asset trading is a multi-layered regulatory area in terms of Turkish law. This activity:
May require permission under SPK legislation.
May create obligations under MASAK legislation.
May pose a risk under the Law on Payment Services.
May conflict with residence and work permit legislation.
May require declaration obligation under tax law.
The current situation is evaluated as not compliant with the law. This assessment is based on:
In terms of SPK: There is a high risk of being evaluated as a "regular occupation."
In terms of MASAK: While risky due to high transaction volume, the possibility of unblocking accounts is a risk-mitigating factor.
In terms of Residence Law: Engaging in commercial activity with a tourist residence permit is not appropriate.
In terms of Tax Law: Declaration obligations may not have been fulfilled; however, filing a declaration increases the residence risk.
Genesis Hukuk offers comprehensive legal consultancy services regarding P2P crypto asset trading:
Legislation analysis: Detailed analysis of all relevant legislation.
Risk assessment: Risk assessment of the activity.
Feasibility analysis: Feasibility analysis of the activity.
Implementation suggestions: Practical implementation suggestions.
Ongoing consultancy: Continuous legal consultancy services.
Real World Asset (RWA) Tokenization ServicesAugust 10, 2025👤Genesis Hukuk
Law No. 6362 on Capital Markets (Amended by Law No. 7518) - Official Gazette: July 2, 2024, No: 32590
Law No. 6493 on Payment and Securities Settlement Systems - Official Gazette: June 27, 2013, No: 28690
Law No. 5549 on Prevention of Laundering Proceeds of Crime - Official Gazette: October 18, 2006, No: 26323
Law No. 6458 on Foreigners and International Protection - Official Gazette: April 11, 2013, No: 28615
Law No. 6735 on International Labor Force - Official Gazette: August 13, 2016, No: 29800
Law No. 193 on Income Tax - Official Gazette: January 6, 1961, No: 10700
SPK Communiqué (III-35/B.1) - Principles on Establishment and Operations of CASPs - Official Gazette: March 13, 2025, No: 32840
SPK Communiqué (III-35/B.2) - Working Procedures and Capital Adequacy of CASPs - Official Gazette: March 13, 2025, No: 32840
SPK Principal Decision (i-SPK.35.B.1) - September 19, 2024 - SPK Website
MASAK General Communiqué (Seq. No: 13) - Suspicious Transaction Reporting - Official Gazette: September 16, 2008, No: 26999
MASAK General Communiqué (Seq. No: 29) - Tightened Measures for Crypto Asset Service Providers - Official Gazette: June 28, 2025, No: 32940
MASAK General Communiqué (Seq. No: 30) - Declaration Obligation in Money Transfers - Official Gazette: January 1, 2026
Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism - Official Gazette: December 10, 2007, No: 26720
Explore how Zero-Knowledge technology can increase KYC/AML compliance, data privacy, and security in financial transactions relevant to P2P.
NOTE: This guide has been prepared based on current legislation and general information. In case of legislative changes and new regulations, the guide may need to be updated. This guide does not constitute legal advice. Every situation is unique, and expert legal counsel must be sought.
