Legal AlertFinance Office of the Presidency of the Republic of Turkey Published Turkey FinTech Guide 2023.

24 March 2023

Turkey FinTech Guide 2023 (“Guide”), designed as an introductory document for the Turkish fintech ecosystem and a guiding resource for fintech startups and investors, has been published by the Finance Office of the Presidency of the Republic of Turkey.

The guide consists of two parts. The first part covers the factors that will bring Turkey to the forefront in terms of both the start-up ecosystem and the fintech sector. The second section includes information on business models in Turkey, regulatory bodies, regulations applicable to fintechs, associations and societies with activities within the scope of fintechs, and incentives and supports that fintechs can benefit from.

In the first part of the Guide, Turkey’s start-up and fintech ecosystem is described, noting that Turkey is the second fastest growing country among OECD (Organization for Economic Co-operation and Development) countries with 5.54% growth in the last 20 years.

In terms of investment in start-ups, Turkey ranks 10th in Europe and 3rd in the Middle East and North Africa region. In terms of the fintech ecosystem, as of February 2023, there are 637 active fintech start-ups in Turkey and the survival rate of fintechs in Turkey is 94.92%. In addition, it is also noted that $ 89 million of investment was received for fintechs in 2022.

In the second part of the Guidelines, information on which financial and organizational obligations should be met in terms of regulations for each business model in the fintech field is provided. This section includes regulations on different fintech business models such as payment institutions, electronic money institutions, digital banking, share-based crowdfunding, insurance and reinsurance brokerage. Additionally, information was provided regarding the public institutions these business models are affiliated with and financial and organizational obligations to which these business models are subject to. It is also noted that the minimum equity amounts for some business models will enter into force on June 30, 2023.

In addition, a table showing which fintech business model in Turkey is related to which paragraphs of the Article 12 of the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions is also included in the Guide.

The Guidelines also include the list of institutions and organizations acting as authorities, regulators and supervisors in the sector and their duties.

Lastly, the timeline of regulations concerning the fintech ecosystem and information on fintech associations, communities, support and incentives are provided.

You can access the full Turkish text of the Guide from the link below.