Türkiye’s financial authorities have suspended the operating licence of fintech company Papel Elektronik Money, following an investigation into allegations that its payment infrastructure was used to facilitate transactions connected to illegal gambling and the movement of funds derived from illicit betting activities.

The decision was published in the Official Gazette on 23 September. Alongside the licence suspension, the Central Bank of Türkiye (TCMB) ordered the company to stop providing electronic wallet and money transfer services.

The regulator’s action follows a review that began in January. According to the official decision, Papel was also placed under the management of the Savings Deposit Insurance Fund of Türkiye (TMSF).

Investigation Focuses on Payment Flows

Authorities are examining whether Papel’s payment infrastructure was used in connection with illegal betting, fraud and unauthorised foreign exchange transactions. The investigation draws on findings from both the TCMB and the Financial Crimes Investigation Board (MASAK).

Investigators allege that money originating from illegal activities entered the financial system through electronic money services before being transferred between accounts belonging to other companies and converted into crypto assets.

The allegations remain subject to an ongoing investigation and have not been conclusively established.

Authorities are reportedly examining approximately ₺1.5 billion (around $35.2 million) in customer transactions that are suspected of being connected to unlicensed gambling operators. Investigators are also looking into the origin of ₺827 million (approximately $19.4 million) reportedly injected into Papel and linked to company Chairman Seyhan İbrahim Yıldırım.

The transaction figures cited in the investigation do not, by themselves, establish that these amounts were illegally obtained or laundered.

Increasing Scrutiny of Fintech Companies

The Papel case comes amid broader efforts by Turkish authorities to identify and disrupt the financial infrastructure supporting illegal gambling networks.

MASAK has been paying increasing attention to the payment channels used by unlicensed operators, including financial accounts, intermediaries and digital platforms through which betting funds may be collected and transferred.

A major earlier case involved Papara, another Turkish fintech company. Its founder and then-CEO, Ahmed Faruk Karslı, was arrested in May 2025 as part of an investigation into alleged illegal betting transactions and money laundering.

According to prosecutors, illegal gambling networks used Papara accounts to move funds into bank accounts and cryptocurrency wallets. The company was subsequently placed under TMSF management.

Türkiye Expands Anti-Illegal Gambling Measures

The government’s broader strategy also targets the financial infrastructure behind illegal gambling rather than focusing exclusively on betting websites and individual accounts.

Speaking at a coordination meeting in Ankara in August, Turkish Vice President Cevdet Yılmaz said enforcement efforts had been expanded to cover payment systems and organised groups involved in illegal operations.

According to Yılmaz, authorities are gathering additional information on rented accounts, unauthorised payment systems and other mechanisms allegedly used to move criminal proceeds.

He also highlighted the potential risks posed by illegal betting to Türkiye’s financial system, as well as its possible impact on families and young people.

Under the current framework, MASAK reviews the implementation of the anti-illegal gambling action plan every two months, while coordination meetings chaired by the vice president take place every four months.

The action against Papel is therefore part of a wider regulatory effort to address the financial channels associated with illegal gambling. At the same time, the suspension raises practical questions for legitimate customers whose accounts or funds could become affected when payment providers are subject to criminal or regulatory investigations.

 

 

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