Turkey has unveiled new cryptocurrency regulations aimed at combating money laundering and terrorism financing. Announced during the final week of 2024, the regulations reflect influences from major global frameworks, including Europe’s upcoming Markets in Crypto-Assets (MiCA) bill.
Under the new rules, cryptocurrency service providers in Turkey must collect identifying information for transactions exceeding 15,000 Turkish lira ($425). However, transfers below this threshold remain exempt from the reporting requirement. The regulation, published in the Official Gazette of the Republic of Turkey on December 25, targets financial crimes and illicit activity within the crypto sector.
The measures will come into effect on February 25, 2025. Additionally, service providers will need to verify the identity of users transacting with unregistered wallet addresses. Failure to obtain sufficient information could result in categorizing the transaction as “risky” and may lead to its suspension. According to the new bill:
“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.”
Turkey ranks as the world’s fourth-largest crypto market, with an estimated trading volume of $170 billion as of September 2023, surpassing major players like Russia and Canada. The country’s evolving regulatory landscape reflects its strategic importance in the global cryptocurrency ecosystem.
The new AML-focused regulations follow a year of increased activity in Turkey’s crypto sector. In 2024, the Turkish Capital Markets Board (CMB) received 47 license applications from crypto companies after the “Law on Amendments to the Capital Markets Law” came into effect in July. This law established a regulatory framework for crypto asset service providers, signaling the government’s intent to formalize the sector.
While cryptocurrency trading remains legal in Turkey, using digital assets for payments has been prohibited since 2021. Although crypto profits are not currently taxed, the government is reportedly considering a minor 0.03% transaction tax to bolster the national budget.
Turkey’s regulatory advancements align with broader global trends. The MiCA bill, set to take effect in Europe on December 30, establishes the world’s first comprehensive regulatory framework for digital assets. Turkey’s proactive measures suggest an intent to align with international standards while addressing domestic risks.