Turkey introduces stricter crypto AML regulations

14 hours ago 4

Turkey introduced new cryptocurrency regulations during the final week of 2024, inspired by positive regulatory developments in the world’s major jurisdictions, including Europe.

Under the new regime, users executing transactions of more than 15,000 Turkish liras ($425) will be required to share their identifying information with the country’s crypto service providers, according to a Dec. 25 document issued by the Official Gazette of the Republic of Turkey.

The new Anti-Money Laundering (AML) regulation aims to prevent the laundering of illicit funds and terrorism financing through cryptocurrency transactions.

Crypto service providers are not required to collect information for digital asset transfers below the $425 threshold.

Turkey’s new regulatory bill comes during a period of increased interest in crypto regulation, a week ahead of the implementation of the world’s first comprehensive crypto regulatory framework, Europe’s Markets in Crypto-Assets (MiCA) bill, which is set to go into effect on Dec. 30.

Will Turkish crypto service providers halt “risky” crypto transactions?

Turkey’s new regulations are set to go into effect on Feb. 25, 2025.

After the implementation, crypto service providers will also need to collect identifying information from customers using wallet addresses that weren’t previously registered with them.

If a provider is unable to collect the necessary information from a sender, the crypto transfer may be categorized as “risky,” enabling the service provider to consider halting it, according to the new bill, which says:

“In case sufficient information cannot be obtained, the issues of not performing the transfer or limiting the transactions made with the financial institution in question or terminating the business relationship will be considered.”

As of September 2023, Turkey was the fourth-largest crypto market in the world, with an estimated trading volume of $170 billion, surpassing major markets like Russia and Canada, according to Chainalysis.

Turkey’s crypto regulations: what you need to know

The past year, 2024, brought renewed activity among Turkish crypto firms, as the Turkish Capital Markets Board (CMB) received 47 license applications from crypto companies under the new regulation, leading up to August.

The wave of applications followed the implementation of the “Law on Amendments to the Capital Markets Law,” which came into effect on July 2. This law was aimed at providing a regulatory framework for crypto asset service providers.

Cryptocurrency trading laws in Turkey allow individuals to buy, hold and trade crypto, but using it for payments has been prohibited since 2021.

While Turkey does not tax crypto profits, it is considering a minor 0.03% transaction tax to help bolster the national budget.