• Turkey mandates ID verification for crypto transactions above $425, effective February 2025.

  • Unregistered wallet transfers face stricter scrutiny under Turkey’s new crypto regulations.

  • Turkey’s crypto market saw 47 license applications under new 2024 regulatory laws.

Turkey has issued new rules for cryptocurrencies that will be implemented on February 25, 2025. The rules mandate that those conducting transactions above 15,000 Turkish Lira ($425) must present their identification to crypto service providers. The regulations are intended to combat the laundering of money and the financing of terrorism. This aligns with Turkey’s commitment to international standards, such as MiCA.

The new regulations were published in the Official Gazette on December 25, 2024. Transactions below the $425 threshold are exempt from these requirements. However, transfers from unregistered wallet addresses will also need identifying information. The transactions in which the providers cannot obtain the required information from the senders may be classified as ‘risky.’ This may result in transfer suspensions or termination of business relations with involved institutions. 

Growing Crypto Adoption

Turkey has seen significant growth in cryptocurrency adoption. By September 2023, Turkey stood out as one of the biggest players in the global crypto market, with the fourth largest market share. According to the report, the trading volume reached $170 billion, which made it larger than Russia and Canada.

In 2024, Turkey’s crypto market experienced increased regulatory activity. The Turkish Capital Markets Board (CMB) received 47 license applications from crypto companies. These applications followed the “Law on Amendments to the Capital Markets Law,” which took effect in July. The law created a regulatory framework for crypto asset service providers.

Crypto Usage Restrictions

Since 2021, Turkish citizens have been allowed to trade, hold, and buy cryptocurrencies. However, the use of crypto for payments is prohibited. Crypto earnings are still not subject to taxation, but a 0.03% charge for each transaction is suggested. This would contribute a little to the total income of the government and, at the same time, facilitate the growth of the industry.

The new regulations come as global scrutiny of cryptocurrency markets intensifies. Europe’s MiCA framework, set to begin on December 30, 2024, has influenced Turkey’s policies. Turkey aims to reduce financial crime risks by requiring identification for high-value transactions. These measures are designed to create a safer and more transparent digital asset ecosystem.

As the February 2025 implementation approaches, Turkish crypto firms prepare for compliance. The rules signal Turkey’s commitment to regulating its growing crypto market. With clear guidelines, the country seeks to balance innovation and security in the digital financial space.

The post Turkey Mandates ID for Crypto Transactions Over $425 in 2025 appeared first on CryptoTale.