Turkey Tops MENA with $200 Billion in Crypto Transactions – Chainalysis Labels It ‘All Speculation’

Turkey Tops MENA with $200 Billion in Crypto Transactions — Chainalysis Labels It ‘All Speculation’

Turkey has established itself as the leading cryptocurrency market in the Middle East and North Africa (MENA), showcasing nearly $200 billion in annual transactions, according to recent findings from Chainalysis. This volume positions Turkey well ahead of other countries in the region, with the United Arab Emirates (UAE) coming in second at $53 billion.

Crypto volume in Turkey

While the overall transaction figures are impressive, analysts caution that a significant portion of this activity may be rooted in speculative trading rather than genuine usage or adoption of cryptocurrencies.

Overview of Turkey’s Evolving Crypto Landscape

The Chainalysis 2025 Crypto Adoption report highlights Turkey's influence in the MENA region, revealing that crypto transaction volumes in the area hit over $60 billion in December 2024, despite a slight reduction in 2025.

Turkey crypto transaction growth

Although the MENA region experienced a year-over-year growth rate of 33%, it still lags behind other developing markets, such as Asia-Pacific (69%) and Latin America (63%). However, the report makes it clear: cryptocurrency is thriving in MENA, even amidst economic challenges and political instability.

Turkey's situation is unique. Since early 2021, gross cryptocurrency inflows have exceeded $878 billion as of mid-2025, all while the country combats serious currency devaluation and ongoing double-digit inflation.

Inflows into Turkish crypto market

Chainalysis indicates that for many Turkish citizens, crypto has become a safe haven for preserving wealth or seeking alternatives to the financial strains caused by the depreciation of the lira.

However, the report warns that the trading patterns suggest a growing speculative environment, especially as retail trader involvement declines while institutional trading remains strong.

Despite ongoing economic turmoil, Turkish crypto trading has sustained consistent momentum, hinting at its dual role as both a method for wealth preservation and speculative trading.

Yet, a notable trend is emerging: retail trading is on the decline, with small transactions down 1.6% and larger retail accounts decreasing by 2.3%.

Changing retail trading patterns

Meanwhile, the growth in professional trading has plummeted from over 40% to just 4% year-over-year. In contrast, institutional trading proves more resilient, as larger investors seek hedges against inflation and digital asset exposure.

Chainalysis attributes this shift to affordability issues, tighter regulations, and a lack of confidence among smaller traders after experiencing prolonged market volatility.

The Impact of Stricter Regulations on Retail Participation

The decline in retail crypto engagement appears linked to financial challenges and stricter regulations imposed by Turkish authorities.

In 2024 and 2025, Turkey introduced robust cryptocurrency regulations to align with global anti-money laundering (AML) and Financial Action Task Force (FATF) standards. Analysts argue this has contributed to a drop in retail participation.

The new regulations enforce stricter Know Your Customer (KYC) guidelines, withdrawal limits, and enhanced reporting obligations for crypto exchanges. Transactions exceeding 15,000 Turkish lira (approximately $360) must now be accompanied by Identifying information and a 20-character transaction note.

Withdrawals lacking complete sender and recipient information may face delays of up to 48 hours, while new users endure a 72-hour hold.

Additionally, authorities have capped stablecoin transfers at $3,000 daily and $50,000 monthly, with higher limits available only to compliant entities adhering to the Travel Rule.

Treasury and Finance Minister Mehmet Şimşek has highlighted that firms failing to comply risk facing fines, license revocations, or bans.

The Financial Crimes Investigation Board (MASAK) has been empowered to freeze accounts suspected of unlawful activity.

In March 2025, Turkey extended its regulatory reach by amending its Capital Markets Law No. 6362, bringing all crypto exchanges, custodians, and wallet providers under the oversight of the Capital Markets Board (CMB).

Two new regulations require platforms to operate as joint-stock companies, maintain minimum capital reserves ($4.1 million for exchanges, $13.7 million for custodians), and conduct regular proof-of-reserve audits.

Moreover, the reforms impose governance and transparency standards, eliminate conflicts of interest, and demand customer protection measures, such as systems for dispute resolution and clear risk disclosures.

Additionally, the exit of major players has also been a factor in reduced retail activity.

For instance, Coinbase has pulled its pre-application to enter Turkey’s crypto market, and Binance has ceased its retail referral program in Turkey to ensure compliance with local regulations.

Ongoing Resilience in Turkey's Crypto Market

Despite the increased regulatory pressure, Turkey continues to be one of the most vibrant crypto markets globally, ranking 14th in Chainalysis’ 2025 Global Crypto Adoption Index.

The Turkish government has even floated the idea of a minor transaction tax of 0.03% to enhance public revenues, although Finance Minister Şimşek clarified that profits generated from crypto assets are not yet subjected to taxation.

Chainalysis noticed that much of the trading activity in Turkey is shifting towards speculative altcoin trading.

Speculative trading shifts

Data from CCData reveals that altcoin trading volumes exploded from approximately $50 million in late 2024 to over $240 million by mid-2025, surpassing stablecoins as the most traded asset class.

Analysts interpret this as an indication of growing risk appetite among investors seeking higher returns amid economic difficulties and stringent regulations.

In the broader MENA region, distinct trends are observable. The UAE's crypto sector continues to expand steadily under a regulated framework, while Israel experiences a surge in volumes following the October 2023 attacks, as residents turn to cryptocurrency as a means of financial security.

Conversely, Iran shows consistent growth despite facing sanctions, existing within a self-sufficient ecosystem that largely avoids global exchanges.

Key Takeaways:

Turkey leads the MENA region with nearly $200 billion in annual crypto transactions.
Analysts warn that much of Turkey's crypto activity is driven by speculation rather than sustainable use.
Despite challenging economic conditions, institutional trading remains strong while retail participation is declining due to stricter regulations.
The Turkish government is implementing tighter crypto laws to align with international standards.
Changes in market dynamics show an increase in speculative altcoin trading amidst fluctuating retail interest.