Turkey’s Stricter Regulations on Cryptocurrency
Turkey is poised to enforce more stringent regulations on cryptocurrency transactions as part of a campaign to tackle financial crimes such as money laundering. Information from the state-operated Anadolu Agency has revealed that under the new proposals, cryptocurrency platforms will be obligated to gather comprehensive data on the origins and objectives of each transaction.
New Requirements for Cryptocurrency Transactions
Specifically, users will be required to include a description of at least 20 characters for every transfer, as detailed in a report published Tuesday.
In an effort to enhance regulatory oversight of crypto asset service providers (CASPs), the country’s Ministry of Treasury and Finance is introducing additional requirements. Notably, there will be holding periods applicable to crypto withdrawals that fall outside the scope of the Travel Rule, which necessitates a 48-hour wait time for most withdrawals and a 72-hour wait for the first withdrawal from any given account.
Limits on Stablecoin Transfers
Moreover, to mitigate the potential outflow of illicit funds linked to activities such as illegal betting and fraud, the ministry plans to enforce daily and monthly limits on stablecoin transfers. Users will be restricted to a maximum of $3,000 in daily transfers and a cap of $50,000 per month. However, those platforms adhering fully to the Travel Rule—by collecting detailed sender and recipient identification—may apply these limits at double the usual maximums.
Minister’s Statement and Compliance Implications
Mehmet Şimşek, the Minister of Treasury and Finance, emphasized that the aim of these regulations is to limit criminal activities without hindering legitimate cryptocurrency operations. He stated that the government intends to preserve a space for lawful crypto activities within Turkey.
Non-compliance with these new regulations could lead to administrative penalties, as well as potential legal repercussions, including loss of licenses.
Exemptions and Global Alignment
Interestingly, transactions involving liquidity provisions, market making, and arbitrage—where users can validate the origin of their funds—will be excluded from these restrictions, provided they are monitored by the respective platforms.
This initiative signifies one of Turkey’s most significant efforts to bring its cryptocurrency regulations in line with global standards, such as the European Union’s Markets in Crypto-Assets (MiCA) framework. Back in March, the Capital Markets Board (CMB) of Turkey implemented new licensing and operational guidelines for CASPs, granting comprehensive authority over crypto exchanges, wallet providers, and custodial services.
The legislation imposes strict qualifications for establishing CASPs in Turkey, detailing expectations around executive backgrounds, shareholder configurations, and minimum capital requirements—set at $4.1 million for exchanges and $13.7 million for custodians.
