Turkey Revokes Fintech Licenses Following Gambling Probe
The Central Bank of the Republic of Turkey (TCMB) has officially suspended the licenses of fintech firms PayFix and Aypara as part of an ongoing investigation into illegal gambling operations.
LISTEN TO THIS ARTICLE:Recent media coverage revealed that PayFix Chair Erkan Kork was taken into custody together with several other individuals connected to the company. According to Turkey’s Financial Crimes Investigation Board (MASAK), the firms facilitated millions of transactions for unauthorized betting websites, many of which involved cryptocurrency payments.
Gambling in Turkey is heavily restricted, with both online and land-based casinos being outlawed, aside from offerings provided by the state-operated Millî Piyango İdaresi, which runs the national lottery and a limited range of online betting services.
Firms Unable to Operate Payment Systems
In light of the arrests, the Central Bank announced it has revoked the Electronic Money Institution (EMI) licenses of both companies. These licenses allow fintech firms to operate payment systems similar to banks but without the authority to issue loans or mortgages.
The Central Bank said in a public statement that it remains committed to maintaining a secure and efficient financial environment, noting that it continues to proactively audit and oversee payment and electronic money institutions. The statement added that investigation reports are sent to relevant public bodies so that they can take further action.
Related: Turkish MP Warns Illegal Gambling is Causing Youth Addiction
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A Wider Crackdown on Illegal Gambling
The detentions are part of a broader campaign by Turkish authorities to tackle illegal gambling, a persistent issue in the country, particularly in sports betting markets like football.
In January, the Turkish government expanded its legal toolkit to combat illegal operations. Finance Minister Mehmet Şimşek described the situation at the time as a “great battle” against illegal betting and gambling entities.
The National Lottery Authority (MPI) reported that more than 233,000 illegal gambling websites were blocked in 2023 and 2024, with most originating from the United States, followed by Armenia and the Netherlands.
Turkey has also cracked down on the use of Telegram, the encrypted messaging platform, due to its association with criminal activities such as drug trafficking, pornography, extremism, and the promotion of crypto-based gambling sites.
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