Turkey introduced new cryptocurrency regulations to strengthen anti-money laundering (AML) frameworks this week. The new rules mandate individuals verify information for medium to large-scale transactions.
These regulations, which will be implemented by February 2025, aim to prevent illicit financial activities in the cryptocurrency market.
Turkey’s Anti-Money Laundering Efforts
Under the new regulations, individuals conducting cryptocurrency transactions exceeding 15,000 Turkish liras, or $425 US dollars, must share their identifying information with crypto service providers.
The new cryptocurrency regulations reflect a global trend toward stricter oversight of money laundering practices via crypto. The country’s growing prominence in global cryptocurrency markets also partly drove the measures.
The recent bill encompasses various aspects of crypto services. It mandates broad obligations such as licensing requirements, measures to prevent market abuse, and establishing formal written contracts with customers.
The development follows the imminent implementation of the Markets in Crypto-Assets (MiCA) regulation in the European Union. Both initiatives signal a growing international focus on establishing a solid regulatory framework for the cryptocurrency sector.
In addition to the transaction limit, customers who use wallet addresses not previously registered with the provider will be subject to identity verification procedures. If providers cannot obtain sufficient information from the sender, they can classify the transaction as “risky” and halt it if necessary.
“If the messages sent continuously contain incomplete information and this information is not completed when requested, the recipient crypto asset service provider shall consider rejecting the transfers from the sender crypto asset service provider or limiting the transactions made with the crypto asset service provider in question or terminating the business relationship,” according to the documentation issued by Official Gazette of the Republic of Turkey.
These new regulations place a significant responsibility on crypto exchanges and service providers to implement secure customer verification systems.
An Evolving Crypto Sector
The past year witnessed renewed activity among Turkish crypto firms, with 47 companies applying for operating licenses from the Capital Markets Board (CMB) as of August. This surge in applications followed the introduction of new regulations. Notable applicants included prominent exchanges like Bitfinex, Binance TR, OKX TR, and Gate TR.
This renewed interest from crypto exchanges in obtaining Turkish licenses stems from the implementation of the “Law on Amendments to the Capital Markets Law” on July 2. The law established a regulatory framework for crypto asset service providers in Turkey.
While Turkey has banned using cryptocurrencies for payments since 2021, individuals can still buy, hold, and trade crypto assets.
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