YEREVAN (CoinChapter.com) — Turkey has introduced new crypto AML regulations to address financial crimes and increase oversight of cryptocurrency transactions. These measures will become effective on Feb. 25, 2025, and require crypto service providers to implement stricter transaction monitoring protocols.
Identification Required for Transactions Over $425
The regulations mandate that crypto transactions exceeding 15,000 Turkish liras ($425) include the user’s identifying information. According to the Official Gazette of the Republic of Turkey, this measure aims to prevent the laundering of illegal funds and financing of terrorism. However, transfers below this threshold are exempt from such requirements.
The timing of these regulations aligns with global developments, including the enforcement of Europe’s Markets in Crypto-Assets (MiCA) bill on Dec. 30, 2024, which is the first comprehensive framework for cryptocurrencies in Europe.
“Risky” Transfers Subject to Limitations
Under the new rules, crypto service providers must collect data from users with previously unregistered wallet addresses. If they cannot secure sufficient information, the transaction may be flagged as “risky.” In such cases, service providers have the authority to stop or limit the transfer.
The regulation specifies:
“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.”
This provision targets financial crimes in Turkey’s large cryptocurrency market, which recorded a trading volume of $170 billion in September 2023, ranking fourth globally according to Chainalysis.
Increased Regulation Spurs Crypto Firm Applications
Turkey’s efforts to regulate the crypto market have driven significant activity among local crypto companies. By August 2024, the Turkish Capital Markets Board (CMB) received 47 license applications from firms seeking approval under new guidelines. This followed the implementation of the Law on Amendments to the Capital Markets Law in July 2024, which created a legal framework for crypto service providers.
While individuals in Turkey can trade, buy, and hold cryptocurrencies, using them for payments has been banned since 2021. Additionally, discussions are underway to introduce a 0.03% transaction tax on cryptocurrency trades to support the national budget.
