The Law No. 7555 Amending the Law on the Protection of the Value of Turkish Currency and Certain Laws and Decree Law No. 635 (the "Amending Law"), published in the Official Gazette dated 24 July 2025 and numbered 32965, introduced significant amendments to the Law No. 1567 on the Protection of the Value of Turkish Currency (the "Law"). Within this scope, the mechanisms regarding authorizations, permits and administrative sanctions under the foreign exchange regime have been restructured. The newly enacted provisions aim to strengthen the supervision of foreign exchange transactions, prevent unauthorized activities and impose stricter administrative sanctions.
The key amendments introduced by the Amending Law are summarized below:
- New Authorities Granted to the President
With the recent amendments, the authority to regulate and supervise certain transactions, including foreign exchange operations, the trading of precious metals and stones and the import and export of commercial instruments has been vested in the President of the Republic of Türkiye.
- Enhanced Administrative Sanctions Against Unauthorized Activities
The Amending Law significantly increases the administrative sanctions applicable to unauthorized transactions. In particular, administrative fines ranging between 50% and 200% of the current market value of the relevant assets or items may be imposed even if the conduct does not constitute a crime or misdemeanor. Such cases include unauthorized foreign exchange transactions, trading of cash, bearer shares and bonds, as well as the illicit import or export of precious metals or stones.
If the same conduct is repeated within five years, the penalty will be imposed at the upper limit or, in some cases, doubled. Moreover, if the unauthorized activity is conducted at a commercial premises, the activity of the premises may be permanently suspended. These provisions are intended to prevent unlicensed operations in the field of foreign exchange and precious commodities and to combat unregistered economic structures.
- Regulatory Licensing Requirement
The Amending Law introduces a license requirement from the Ministry of Treasury and Finance for persons and entities wishing to operate in specific fields such as commercial foreign exchange trading, membership in Borsa İstanbul's precious metals market, precious metal refining activities and transactions under the Kimberley Process Certification Scheme. Additional fees may apply for certain actions such as branch openings or share transfers depending on the region of activity. In some cases, exemptions from these fees may be granted. The President is authorized to reduce these fees by up to 50% or increase them by up to 100%.
- Other Sanctions Regarding Regulatory Non-Compliance
Engaging in activities that require prior authorization or licensing without obtaining such approval will result in an administrative fine ranging from TRY 50,000 to TRY 250,000. All operations at the relevant premises may be suspended for a period between one and six months and permanently in case of repeated offenses. If the unauthorized activity is clearly identifiable through advertisements or promotional materials, the permanent suspension may be imposed immediately. The implementation of these sanctions will be carried out through the provincial administrations, upon request of the Ministry of Treasury and Finance.
- Conclusion
With the Amending Law, the Turkish legislator aims to prevent unauthorized activities in strategically important economic sectors such as foreign exchange, precious metals and gemstones and to promote a more transparent and auditable economic structure by encouraging licensed and supervised operations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
