Turkey's Finance Minister Vows Crackdown on Market Manipulation

ISTANBUL—In a decisive move to bolster investor confidence and ensure financial market stability, Turkey's Finance and Treasury Minister Mehmet Şimşek announced plans to intensify the fight against market manipulation, particularly targeting certain investment funds.

Speaking at the Turkish Capital Markets Congress in Istanbul on November 4, 2025, Şimşek acknowledged existing regulatory gaps and emphasized the necessity for stricter penalties and enhanced regulations to protect investors and maintain market integrity. He stated, "We know these manipulations are being carried out, especially through certain funds, and know there is a lack of regulation in that area. We will address this deficiency."

The minister did not specify which funds were under scrutiny but highlighted the government's commitment to strengthening the regulatory framework. "In the fight against manipulation, we will make additional efforts to increase penalties and strengthen the regulatory framework," Şimşek added.

Omer Gönül, head of the Capital Markets Board (CMB), indicated that potential measures could include raising fines related to manipulation and revoking portfolio management licenses. "One potential punishment is cancelling licenses," Gönül told reporters.

This announcement follows a year of heightened scrutiny, during which Turkish authorities detained individuals linked to irregular trading activities. The crackdown comes amid persistent high inflation, prompting Turkish citizens to seek alternative investments such as foreign currencies, stocks, and cryptocurrencies.

The government's intensified efforts to combat market manipulation reflect a broader strategy to enhance financial market integrity, protect investors, and stabilize the economy. The proposed regulatory reforms and penalties aim to address existing gaps and deter manipulative practices, fostering a more transparent and trustworthy investment environment.

Following the announcement, Turkey's stock exchange, Borsa Istanbul, experienced a decline, with the benchmark BIST 100 index closing 1.32% lower at 10,914.10 points.

The Turkish government's commitment to intensifying the fight against market manipulation underscores its dedication to ensuring market integrity and protecting investors. The proposed measures are poised to address existing regulatory deficiencies and deter manipulative practices, fostering a more transparent and trustworthy investment environment.