Ethereum programmer detained in Turkey due to accusations connected to blockchain technology
In the realm of cryptocurrencies, two significant developments have caught the attention of the global community. On one hand, Turkey has implemented stringent regulations to curb abuses in the cryptocurrency and blockchain sectors, focusing on anti-money laundering (AML), combating the financing of terrorism (CFT), and investor protection. On the other hand, an Ethereum developer, known as "Stagiaire de Fede," was recently arrested in Izmir, Turkey, amidst unclear allegations.
Turkey's Cryptocurrency Regulations
As of 2025, Turkey has taken a firm stance on cryptocurrencies. Crypto service providers must now collect identifying information for transactions exceeding 15,000 Turkish liras (~$425). Crypto platforms are legally defined as Crypto Asset Service Providers (CASPs) and are supervised by the Capital Markets Board (CMB), with similar oversight as traditional capital market institutions.
The use of cryptocurrencies for direct payment has been prohibited since 2021 to protect the Turkish lira's stability, yet trading remains legal. Withdrawals or transfers from crypto platforms are subject to mandatory holding periods of 48 to 72 hours, and each crypto asset transfer must include a minimum 20-character description of its purpose.
Turkey is also aligning its regulations with global standards such as the OECD's Crypto-Asset Reporting Framework (CARF), enhancing transparency and regulatory coherence. The government is considering a small tax (0.03%) on crypto profits to support the national budget.
The Arrest of an Ethereum Developer
The developer, who oversees several companies in Europe and operates with transparency and integrity, was arrested in Izmir. The reasons for the arrest are unclear, with authorities alleging abusive exploitation of the Ethereum blockchain. However, the developer denies these allegations, claiming he only builds tools and infrastructure for the Ethereum network.
During his detention, the developer claims to have received good treatment and is housed in a private room. He plans to disclose more information once he is free and in contact with his legal team. The outcome of this situation remains uncertain.
The allegations against the developer have caused confusion within the cryptocurrency community, with the meaning of "abuse" in this context being unclear. This incident underscores the need for fair and explicit laws as the rapid expansion of blockchain technology continues.
In conclusion, Turkey’s current regulatory regime aims to legalize and oversee cryptocurrency activity while strictly preventing abuse through enhanced Know Your Customer (KYC), transaction monitoring, AML/CFT enforcement, and licensing of providers. However, the use of crypto for direct payments remains prohibited, and the government actively monitors large or suspicious transactions to combat illegal use. The arrest of the Ethereum developer serves as a reminder of the need to ensure the safety of users and developers in the cryptocurrency sector.
- Turkey's regulatory stance on cryptocurrencies has resulted in Crypto Asset Service Providers (CASPs) being legally defined and supervised, much like traditional capital market institutions, using technology to ensure transparency and compliance with global standards such as the OECD's Crypto-Asset Reporting Framework (CARF).
- The arrest of the Ethereum developer, Stagiaire de Fede, in Izmir, Turkey, over allegations of abusive exploitation of the Ethereum blockchain, highlights the need for fair and explicit laws as blockchain technology continues to expand, ensuring the safety and fairness for both users and developers in the cryptocurrency sector.
