He ordered their expulsion from the city proper, and assigned them a quarter on the other side of the Golden Horn, called the Stanum (modern Beyoğlu).
Until then, the Jewish community had occupied a special quarter known as the "copper market" in the city itself, where they had a synagogue, which was later converted into the Church of the Holy Mother.
According to Ibn Verga in his Scepter of Judah, the expulsion from the city was a measure of clemency to force the Jews to embrace Christianity.
Emperor Justinian I (r527–565) was the first to intervene directly in the religious affairs of the Jews, when he forbade them from celebrating Passover before the Christian Easter.
However, since it was the Byzantine capital and the biggest economical center of the period, the community recovered after Leo VI (886–911) restored religious freedom to the Jews.
The fabric of the Ottoman Jewish society changed with waves of immigration of Ashkenazi, Sephardi, and Italian Jews, who all built separate and autonomous congregations.
In the 16th and 17th centuries, a significant number of congregations named "Seniora" was founded by the financial support of Gracia Mendes Nasi for the anusim from Portugal settling in Istanbul.
It was elected for a fixed term — one, two, or more years — and usually had equal representation for all of the community's economic classes, despite the fact the rich were only a minority.
He preached in the synagogue and was the community's representative in the municipal assembly of Marbitzei Torah, which discussed religious matters that affected everyone, including legislation.
[11] For instance, Hekim Jacob first entered the Ottoman court as the personal physician to Mehmed II and later became his financial adviser, translator, diplomat to Venice, treasurer, and vizier.
[12][11] As a result of this distinguished service, Mehmed II bestowed a tax exemption to Hekim Jacob and his descendants in the Ottoman Empire.
Imperial decrees also required the sale of Jewish property in the area to Muslims, and prohibited the renting of residence to Jews.
[21] For instance, the French settlers in the city had many additional economic rights,[20] were protected by foreign ambassadors,[21] and also benefited from preferential tax rates.
In 1856, a blood libel case occurred at Balat,[25] where a mob of Greeks and Armenians started attacking Jews and looting Jewish businesses.
[17] During the reign of the sultan Abdülmecid I the authorities allowed the admission of Jews into the military school of medicine and the poll tax was abolished.
In 1887, the Or-Ayahim Jewish Hospital [he] was founded in Istanbul by a number of local doctors and philanthropists, to serve as a charitable institution that would provide free treatment to poor Jews.
In 1898, a modern rabbinical school was founded, headed by Rabbi Abraham Danon, a Hebrew scholar, poet, and historian.
[27] In 1911, Baron Hirsch, at the initiative of Rabbi Shmuel Shapira, established an agricultural farm called "Mesila Hadasha" about 25 kilometers away from Istanbul which served as a transit and training station for immigrants to Palestine.
During World War I, Jewish soldiers and officers from Palestine who served in the Turkish army stayed at the farm.
After the war, with the consent of Joseph Trumpeldor, the farm served as a transit and training station for members of "Hechaluts", from the third Aliyah, on their way to Palestine.
[29] With the establishment of the Republic of Turkey, the community was prohibited from collecting membership fees and matters of personal status were subjected to civil law.
[27] In 1949, the Jewish community was granted internal autonomy, as proposed by a member of the House of Representatives, Shlomo Adato.