The Law on the Protection of the Value of Turkish Currency and Amendments to Certain Laws and Decree Law No. 635, adopted by the Grand National Assembly of Turkey on 20 July 2025, was published in the Official Gazette dated 24 July 2025. The provisions of the aforementioned law amendment affecting Law No. 1567 on the Protection of the Value of Turkish Currency (“Law”) entered into force on the date of publication.

The refining of precious metals has been included to the scope of the Law; provisions regarding unauthorised and unlicensed activities, administrative fines and suspension periods have been revised, and activities subject to the approval of the Ministry of Treasury and Finance has been updated. Our explanations regarding the relevant changes are presented below:

• The refining of precious metals has been included to the scope of the Law and, consequently, to the scope of regulations to be issued by the President regarding the protection of the value of Turkish currency.
• If the unauthorised transfer of valuables covered by the Law from or into the country does not constitute a crime or offence under smuggling legislation, an administrative fine of between half and twice the market value of the goods and valuables will be imposed. In the case of an attempt, the penalty will be reduced by half.
• The activities of persons engaged in unauthorised activities will be suspended for one month, and if such unauthorised activities are repeated within five years from the date on which the administrative fine imposed for such unauthorised activities becomes final, the administrative fine will be imposed at the upper limit.
• If it is understood that the workplace where unauthorised activities are carried out is operated for the sole purpose of engaging in activities that require a license or authorisation, based on advertisements and announcements or the nature of the work performed, all activities will be permanently suspended, and the maximum administrative fine will be imposed.
• Penalties for offences arising from violations of secondary regulations covered by the Law will be doubled if the same offence is repeated within five years of the date on which the administrative penalty decision for the same offence becomes final.
• Permission from the Ministry of Treasury and Finance is required to engage in the activities listed below:

1. 1. Engaging in foreign currency trading for commercial purposes;
   2. Operating as a member of the Precious Metals Market of Borsa Istanbul A.Ş.;
   3. Engaging in precious metal refining activities;
   4. Engaging in activities within the scope of the Kimberley Process Certification Scheme, which was decided to be joined by the Council of Ministers Decision No. 2005/8518 dated 21 February 2005.

• The Ministry of Treasury and Finance is authorised to revoke the operating license of joint stock companies subject to the Law if they are found to be engaging in activities contrary to their economic objectives and purposes, and to determine the areas of operation for commercial foreign currency trading.
• In the assignment by inheritance of shares of the companies listed in (i), (ii) and (iii) above, no fee will be charged if the assignee is the spouse, descendant, ascendant or sibling of the current shareholder. Other share assignments are subject to a fee proportional to the percentage of shares assigned.
• The fee schedule applicable to the permissions regarding engaging in foreign currency trading for commercial purposes, operating in the Precious Metals Market of Borsa İstanbul A.Ş., engaging in precious metal refining activities and share assignments of these companies is determined.

Specifying the companies subject to licensing under the Law, determination of fees directly by the Law and limiting time periods for recurring offences, has strengthened legal certainty and predictability. In addition, possible administrative measures have been tightened.