Turkey introduced new cryptocurrency regulations this week to strengthen anti-money laundering (AML) frameworks. The new rules require individuals to verify information for medium- and large-scale transactions.
These regulations, which will be implemented by February 2025, aim to prevent illicit financial activities in the cryptocurrency market.
Turkey’s Anti-Money Laundering Efforts
Under the new regulations, individuals carrying out cryptocurrency transactions exceeding 15,000 Turkish liras, or US$425, must share their credentials with crypto service providers.
The new cryptocurrency regulations reflect a global trend toward stricter monitoring of money laundering practices through cryptocurrencies. The country’s growing importance in global cryptocurrency markets has also partly motivated these measures.
The recent bill encompasses various aspects of crypto services. It imposes general obligations such as licensing requirements, measures to prevent market abuse and the establishment of formal written contracts with customers.
This development follows the imminent implementation of the Markets in Crypto-Assets (MiCA) Regulation in the European Union. Both initiatives demonstrate growing international attention to establishing a robust regulatory framework for the cryptocurrency sector.
In addition to the transaction limit, customers who use wallet addresses not previously registered with the provider will be subject to identity verification procedures. If providers are unable to obtain sufficient information from the sender, they may classify the transaction as “risky” and terminate it if necessary.
“If sent messages consistently contain incomplete information and such information is not completed when requested, the receiving crypto-asset service provider should consider refusing transfers from the sending crypto-asset service provider or to limit transactions carried out with the crypto-asset service provider in question or terminate the business relationship,” according to documentation published by the Official Gazette of the Republic of Turkey.
These new regulations place significant responsibility on crypto exchanges and service providers in implementing secure customer verification systems.
An evolving crypto sector
Last year saw a surge of activity among Turkish crypto companies, with 47 companies applying for an operating license from the Capital Markets Board (CMB) as of August. This increase in requests follows the introduction of new regulations. Notable candidates included leading exchanges such as Bitfinex, Binance TR, OKX TR, and Gate TR.
This renewed interest of cryptocurrency exchanges in obtaining Turkish licenses stems from the implementation of the “Law Amending the Law on Capital Markets” on July 2. The law established a regulatory framework for crypto asset service providers in Türkiye.
Although Turkey has banned the use of cryptocurrencies for payments since 2021, individuals can still purchase, hold and trade crypto assets.
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