ISTANBUL — The Central Bank of the Republic of Türkiye (CBRT) has revoked the operating license of Papel Elektronik Para ve Ödeme Hizmetleri A.Ş., an electronic money and payment services company.
The CBRT’s decision regarding Papel was published in the Official Gazette. Under the decision, the company’s authorization to operate as an electronic money institution, which was granted by the CBRT on October 27, 2022, has been revoked under relevant provisions of Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions.
The decision refers to Articles 16/1(c) and 16/1(e), Article 19 and Article 21/8 of Law No. 6493 as the legal basis for the revocation.
The CBRT decision does not provide further details on the specific circumstances that led to the application of these provisions.
The license revocation comes after a series of developments concerning Papel in 2026. In January, the company was placed under the management of the Savings Deposit Insurance Fund (TMSF) as a trustee in connection with an investigation. In June, an indictment was prepared against 44 suspects in the investigation. The allegations in that indictment have not resulted in final convictions.
Under Law No. 6493, customer funds held by electronic money institutions are subject to specific protection mechanisms. Funds received in exchange for electronic money must be kept separately from the institution’s other funds in designated protection accounts. In the event of a license revocation or liquidation, these funds and the relevant accounts are intended to be used to meet the claims of fund owners.
As of September 23, the timetable and method for returning funds to Papel customers had not yet been publicly announced.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök