Beosin Compliance Team Beosin December 27, 2024 15:44 Japan With the rapid development of the global cryptocurrency market, anti-money laundering (AML) and compliance supervision have gradually become the focus of attention of various countries. Recently, the Turkish government announced a series of stricter anti-money laundering regulations for cryptocurrencies, which quickly attracted widespread attention in the industry. These new regulations will officially take effect on February 25, 2025, demonstrating Turkey's determination in the field of crypto industry regulation, and also providing an important reference for the compliance development of the global market.
Interpretation of the new regulations: Strengthening information transparency and transaction security
On December 25, 2024, the Turkish government announced the key provisions of the new anti-money laundering regulations, focusing on transaction thresholds, handling of risky transactions, and restrictions on unregistered wallets, aiming to enhance the transparency and security of cryptocurrency transactions.
Turkey's New Cryptocurrency Regulations
Source: Official Gazette of the Republic of Turkey
1. Setting Transaction Thresholds
According to the new regulations, when users execute cryptocurrency transactions exceeding 15,000 Turkish Lira (approximately 425 USD), they must submit complete identification information to the service provider. For transactions below this threshold, service providers may choose to collect relevant information. This regulation aims to ensure the traceability of large transactions, effectively curbing illegal fund flows.
2. Handling Risky Transactions
If the sender of the cryptocurrency fails to provide sufficient information, their transaction will be marked as 'high-risk'. In this case, service providers have the right to take various measures, including refusing the transaction, restricting cooperation with related financial institutions, or even terminating business relationships with the trading party. This regulation grants service providers greater discretion and helps improve the overall security of the transaction system.
3. Restrictions on Unregistered Wallets
Wallet addresses not registered on the platform are also subject to strict regulation. Service providers are required to collect the sender's identification information, or the relevant transactions will be restricted. This measure aims to combat illegal activities conducted through anonymous wallets, such as money laundering and terrorist financing.
Through these measures, the Turkish government hopes to establish a more transparent and secure trading environment in the cryptocurrency sector, laying the foundation for future industry standardization.
Global Context: Aligning with the European MiCA Framework
The introduction of Turkey's new regulations coincides with significant regulatory changes in the global cryptocurrency industry. The European Regulation on Markets in Crypto-Assets (MiCA) will come into effect on December 30, 2024, and is regarded as the world's first comprehensive regulatory framework covering crypto assets.
Turkey's new regulations evidently draw from international advanced regulatory experiences such as MiCA, marking its alignment with global compliance standards in cryptocurrency. This convergence with international norms not only enhances the attractiveness of the Turkish market but also provides a more credible trading environment for international investors. Furthermore, strengthening regulations is crucial for combating cross-border financial crimes like money laundering and terrorist financing.
Industry Impact: Turkey's Compliance Path and Market Prospects
As the fourth-largest cryptocurrency market globally, Turkey's trading volume reached $170 billion in 2023, surpassing Russia and Canada, showcasing its significant position in the cryptocurrency arena. However, Turkey still faces numerous challenges between regulation and market development. While buying, holding, and trading cryptocurrencies are legal in Turkey, the use of cryptocurrencies as a payment tool has been prohibited since 2021. This means that although investors can trade freely, they cannot apply cryptocurrencies directly in everyday consumption scenarios.
Turkey's cryptocurrency market demonstrates robust growth momentum, driven by its unique economic environment and the strong demand for digital assets among the public. For a long time, Turkey has faced high inflation and currency devaluation, prompting more people to view cryptocurrencies as tools for hedging risks and protecting wealth. However, the Turkish government's attitude towards cryptocurrencies is relatively cautious; although legal trading is allowed, restrictions in payment scenarios indicate that regulators are still trying to balance innovation with risk control.
1. Promoting Market Standardization
The new regulations will significantly enhance market transparency and transaction security, boosting investors' confidence in crypto assets. In a standardized market environment, participants can enjoy higher quality services, further promoting healthy market development.
2. Accelerating Corporate Compliance Processes
By December 2024, 77 cryptocurrency companies had applied for operational licenses from the Turkish Capital Markets Board. This reflects businesses' positive response to the new regulations and lays the groundwork for broader market participation in the future.
3. Long-term Development Potential
Despite the new regulations imposing restrictions on certain trading activities, the Turkish government maintains an open attitude towards tax policies. For instance, there is no tax on profits from crypto assets, with only a 0.03% transaction tax, demonstrating support for market development. This balanced regulatory approach will aid the long-term development of Turkey's crypto market.
Beosin KYT: Supporting Web3 Security and Compliance
Against the backdrop of global regulatory upgrades in the cryptocurrency industry, the importance of compliance tools is increasingly prominent. As a leader in the Web3 security and compliance field, Beosin's KYT (Know Your Transaction) system provides comprehensive compliance support for cryptocurrency service providers.
Real-time Monitoring of Transactions
The Beosin KYT system can detect high-risk transactions and suspicious addresses, helping service providers to block illegal fund flows in real-time and reduce the risk of financial crimes.
Comprehensive Compliance Solutions
The system has already complied with the AML regulatory requirements of multiple countries and can help businesses quickly adapt to new regulations in markets like Turkey, meeting local and international compliance standards.
Customized Services
For high-growth markets like Turkey, Beosin provides localized support to help businesses tackle regulatory challenges and reduce compliance costs through efficient tools.
The Cryptocurrency Industry Enters a New Phase of Transparency and Security
Turkey's new regulations mark an important step in the global cryptocurrency industry's shift from 'wild growth' to 'standardized development'. By strengthening anti-money laundering measures and aligning with international norms, Turkey lays the groundwork for a safer and more transparent crypto ecosystem. In this process, compliance technologies like Beosin KYT will become key forces driving the healthy development of the industry. In the future, as more countries join the regulatory ranks, the cryptocurrency industry is expected to embrace broader development prospects in an environment of enhanced security and transparency.
Reference:
https://cointelegraph.com/news/turkey-new-crypto-regulation-aml-2024
https://cointelegraph.com/learn/articles/cryptocurrency-laws-and-regulations-in-turkey