Written by: Beosin Compliance Team
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 cryptocurrency anti-money laundering regulations, 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 cryptocurrency industry supervision, 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
The Turkish government issued an announcement on December 25, 2024, clarifying the main provisions of the new anti-money laundering regulations, focusing on the setting of transaction thresholds, risky transaction processing and restrictions on unregistered wallets, striving to improve the transparency and security of cryptocurrency transactions.
Türkiye’s New Cryptocurrency Regulations
Source: Official Gazette of the Republic of Turkey
1. Trading threshold setting
Under the new regulations, users will be required to submit complete identity information to service providers when performing cryptocurrency transactions exceeding 15,000 Turkish lira (about $425). For transactions below this threshold, service providers can selectively collect relevant information. This regulation is intended to ensure the traceability of large transactions, thereby effectively curbing the flow of illegal funds.
2. Handling of risky transactions
If the sender of cryptocurrency fails to provide sufficient information, the transaction will be marked as "high risk". The service provider has the right to take a variety of measures in this case, including refusing the transaction, restricting cooperation with relevant financial institutions, or even terminating the business relationship with the transaction party. This regulation provides service providers with greater discretion and helps improve the security of the overall transaction system.
3. Restrictions on unregistered wallets
Wallet addresses that are not registered on the platform are also strictly regulated. Service providers need to collect the sender's identity information, otherwise the relevant transactions will be restricted. This measure is aimed at combating illegal activities such as money laundering and financing of terrorism conducted through anonymous wallets.
Through the above measures, the Turkish government hopes to establish a more transparent and secure trading environment in the field of cryptocurrency, laying the foundation for the standardized development of the industry in the future.
Global context: Aligning with the European MiCA framework
Turkey’s new rules come at a time when the global cryptocurrency industry is facing important regulatory changes. Europe’s Markets in Crypto-Assets Act (MiCA) will come into effect on December 30, 2024 and is considered the world’s first regulatory framework to fully cover crypto assets.
Turkey's new regulations clearly draw on advanced international regulatory experience such as MiCA, marking its alignment with the world in terms of cryptocurrency compliance. This convergence with international norms not only helps to enhance the attractiveness of the Turkish market, but also provides a more credible trading environment for international investors. In addition, strengthening supervision is essential to address cross-border financial crimes such as money laundering and terrorist financing.
Industry impact: Türkiye's compliance path and market prospects
As the world's fourth-largest cryptocurrency market, Turkey's trading volume in 2023 reached $170 billion, surpassing Russia and Canada, demonstrating its important position in the cryptocurrency field. However, Turkey still faces many challenges between regulation and market development. Although buying, holding and trading cryptocurrencies are legal in Turkey, using cryptocurrencies as a payment tool has been banned since 2021. This means that although investors can trade freely, they cannot directly apply cryptocurrencies to daily consumption scenarios.
Turkey's cryptocurrency market has shown strong growth momentum, which is inseparable from its special economic environment and the strong demand for digital assets among the people. Turkey has long faced problems of high inflation and currency depreciation, which has prompted more and more people to regard cryptocurrencies as a tool to hedge risks and protect wealth. However, the Turkish government's attitude towards cryptocurrencies is relatively cautious. Although legal transactions are allowed, restrictions on payment scenarios indicate that regulators are still trying to balance the relationship between innovation and risk control.
1. Promote market standardization
The new regulations will significantly improve market transparency and transaction security, and enhance investors' confidence in crypto assets. In a standardized market environment, participants can enjoy higher quality services, thus further promoting the healthy development of the market.
2. Accelerate corporate compliance process
As of December 2024, 77 cryptocurrency companies have applied for operating licenses from the Turkish Capital Markets Board. This reflects the positive response of enterprises to the new regulations and lays the foundation for broader market participation in the future.
3. Long-term development potential
Although the new regulations set restrictions on some trading activities, the Turkish government has maintained an open attitude towards tax policy. For example, no tax is levied on crypto asset profits, and only a 0.03% transaction tax is levied, showing support for market development. This balanced regulatory approach will help the long-term development of the Turkish crypto market.
