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Türkiye’s central bank on Tuesday announced temporary restrictions on digital payment platform Papara, following a court order appointing the state’s Savings Deposit Insurance Fund as trustee amid an ongoing illegal betting investigation.
The central bank's statement comes in response to growing user complaints of disrupted access and failed transactions following the probe, when authorities detained 13 individuals, including the company’s owner.
According to prosecutors, Papara—licensed as an electronic money institution since 2016—became a key facilitator for money transfers related to illegal betting schemes. Authorities alleged that the platform had evolved into “a significant tool for financing illegal betting and gambling crimes,” posing serious risks to the security of the national payments system.
The court subsequently appointed Türkiye’s Savings Deposit Insurance Fund (TMSF) as a trustee to oversee Papara’s operations and its seized assets.
According to the Central Bank of the Republic of Türkiye (CBRT), the trustee appointment was made within the scope of an investigation conducted by the Istanbul Chief Public Prosecutor’s Office, supported by findings from the Financial Crimes Investigation Board (MASAK), CBRT, and other institutions.
The CBRT confirmed that daily transaction limits would be applied temporarily to all payment services provided by Papara during the trustee-led process. The Bank emphasized that details of the restrictions will be disclosed by Papara directly.
The statement further noted that the platform’s services are not fully operational, with the Central Bank referring to the situation as a “temporary suspension” of certain functions. While users can still access the application interface, they are unable to perform transactions, which are blocked or met with error messages.
Despite the service disruptions, the Central bank reassured users that their funds remain protected. Under Article 22 of Law No. 6493, customer balances held by electronic money and payment institutions are secured in designated safeguard accounts at licensed banks.
The CBRT reiterated its oversight responsibility, stating that it continues to supervise the secure, uninterrupted, and efficient operation of all licensed payment and electronic money companies in Türkiye.
This latest action follows a similar crackdown in March 2025, when Turkish prosecutors launched investigations into illegal gambling involving other fintech companies, including Payfix, Aypara, and Ininal. That operation led to the arrest of Turkish banker Erkan Kork and 58 others, and also resulted in the seizure of the companies involved.
Authorities at the time cited similar concerns over the use of electronic money platforms to facilitate unauthorized betting transactions, emphasizing the need to safeguard the integrity of Türkiye’s financial system.
Illegal betting in Türkiye refers to all forms of gambling and sports wagering conducted outside state-authorized institutions. Under Turkish law, only two entities are permitted to offer legal betting services: the state-run Spor Toto Organization for sports betting and the National Lottery Administration for lottery-style games.
Such fintech companies were widely known among illegal bettors for enabling money transfers with ease.
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