Turkey is preparing to implement a stricter regulatory framework for cryptocurrencies, with new anti-money laundering (AML) measures set to come into effect on February 25, 2025.
These regulations seek to mitigate the use of digital assets in illicit activities such as money laundering and terrorist financing, marking a significant change in the crypto environment of one of the largest markets globally.
Key points of the new regulations
Among the most notable provisions, transactions over 15,000 Turkish liras (approximately $425) are required to include personally identifiable information of users. Crypto service providers will be required to collect data on the holders of the wallets involved in such transactions. In case the necessary information is not provided, the transaction could be categorized as “risky” and even suspended.
In addition, platforms will be mandated to monitor and record activity from previously unregistered wallets. If the sender of a transaction does not provide adequate data, providers may limit such operations or, in extreme cases, terminate business relationships with the users involved.
These measures are also in line with global trends that seek to strengthen security in the crypto sector and align with international financial regulation standards.
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A growing crypto market
With Turkey positioned as the fourth-largest cryptocurrency market in the world, these new regulations will have significant repercussions. As of September 2023, trading volume in the country was approximately $170 billion, surpassing major markets such as Russia and Canada.
This scenario illustrates the accelerated growth of cryptocurrency adoption in Türkiye, despite the fact that the use of digital assets as a form of payment has been banned since 2021.
The growing demand is also reflected in the increase in applications for license registration by crypto companies, with 47 applications received since July 2024, following the implementation of the “Act on Amendments to the Capital Markets Law.”
Comparison with global regulations
Turkey’s regulatory approach follows the lines of frameworks implemented in other jurisdictions, such as the MiCA (Markets in Crypto-Assets) bill in the European Union. MiCA is set to implement stricter regulations from December 2024, demonstrating a global effort to establish greater controls and standards in the industry.
In addition, the Turkish government is considering introducing a minimum transaction tax of 0.03% on profits generated in cryptocurrencies. While this measure is not yet in force, it could be implemented as an additional resource to increase tax revenues.
Implications for the future
The new regulations underline a stricter and more structured approach to the cryptocurrency industry in Turkey. This could have several effects, from improving the confidence of international investors to ensuring a safer ecosystem for domestic users.
However, it could also present challenges for platforms operating in the country, requiring greater resources dedicated to regulatory compliance.
Ultimately, Turkey is looking to balance the growth of its thriving crypto market with the need for transparency and regulation. As 2025 approaches, it will be key to watch how these policies impact both trading volumes and user perceptions of these measures.
For the global cryptocurrency community, Türkiye could serve as an example of how to regulate a rapidly growing market without stifling innovation.