Turkey is preparing to strengthen its anti-money laundering (AML) framework for cryptocurrency transactions, requiring user verification for transactions exceeding 15,000 Turkish lira (approximately $425). These new regulations were published in the official gazette of Turkey on December 25, 2024, and will take effect on February 25, 2025, aiming to align the country's cryptocurrency policies with global standards, including the EU's Markets in Crypto-Assets (MiCA) regulations.
Under the new regulations, cryptocurrency service providers will be required to verify the identities of users conducting transactions above a specified amount. Additionally, service providers must ensure that transactions from unregistered wallet addresses are legitimate. This new regulation will allow the country's cryptocurrency service providers to halt 'risky' cryptocurrency transactions in cases of insufficient user information.
The Turkish government has taken these measures to combat money laundering and terrorism financing activities in the rapidly growing cryptocurrency industry. These regulations also introduce stricter compliance measures, including a requirement for cryptocurrency service providers to obtain a license from the Capital Markets Board (CMB) of Turkey.
As Turkey continues to develop its regulatory framework for cryptocurrencies, these new anti-money laundering measures represent an important step towards creating a safer and more transparent environment for digital asset trading in the country.
Blockchain data analytics firm Chainalysis reported in September 2023 that Turkey's total cryptocurrency transaction volume reached $170 billion from June 2022 to July 2023, ranking just behind the United States, India, and the United Kingdom, establishing a leading position in the global cryptocurrency active market.
Turkey's approach aligns with the EU's MiCA framework, which sets high standards for digital asset operations across Europe and encourages similar adjustments globally. These new regulations in Turkey have prompted cryptocurrency companies to strengthen their compliance efforts, with the Capital Markets Board (CMB) of Turkey receiving 77 license applications from cryptocurrency companies as of December 2024, following the implementation of the Capital Markets Law amendment that took effect on July 2.
Although these stringent new measures aim to enhance consumer protection, industry experts express concerns about the negative impact on innovation. Small companies with limited resources may struggle to bear the associated compliance costs, which could lead to market consolidation. On the other hand, large international enterprises may view these regulations as favorable, considering Turkey as a good opportunity for expansion.
Turkey's regulatory evolution is crucial for its domestic market as well as the broader global cryptocurrency framework. It sets a precedent for other countries that may follow suit in integrating similar anti-money laundering strategies to address the risks posed by cryptocurrency adoption. While this presents clear challenges for small companies, stricter regulations may also pave the way for responsible development within the industry, promoting safer practices against financial crime.
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"Turkey strengthens anti-money laundering regulations for cryptocurrencies, requiring user verification for transactions over $425". This article was first published on (Blockcast).