Turkey Tightens Crypto Rules to Fight Money Laundering

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  • In Turkey, a new anti-money laundering law requires identification verification for crypto transactions over $425.
  • Rules, which take effect on February 25, 2025, aim to reduce illicit crypto use.

As a seasoned analyst with years of experience in the global financial sector, I find Turkey’s new anti-money laundering law for cryptocurrencies to be a prudent and necessary step towards ensuring financial stability and security. Having witnessed similar regulatory evolutions in various countries over the past decade, I can confidently say that this move is a testament to Turkey’s commitment to combating illicit activities while fostering a robust and accountable cryptocurrency market.

Turkey has enacted new legislation focused on combating money laundering, particularly in relation to cryptocurrency transactions. Under this regulation, anyone engaging in a transaction over 15,000 Turkish lira (approximately $425) must disclose their personal information to the cryptocurrency service provider. This rule, published in the Official Gazette on December 25, is designed to restrict the use of digital assets for illicit and terrorist purposes.

Transactions below the value of $425 do little to alleviate user worries about supervision and confidentiality, as these regulations align with broader policies regarding cryptocurrency in Turkey, a sector that boasts around $170 billion in trading volume by September 2023. Remarkably, this market is expanding at a pace surpassing both Russia and Canada.

Increasing Interest in Turkish Crypto Licenses

As of February 25, 2025, the law mandates that cryptocurrency companies verify users’ identities and log unregistered wallet addresses. Service providers may neglect to acquire the required information from senders. As a result, they may categorize transactions as risky and potentially block them.

It reflects the latest legislative advances seen in various nations worldwide, starting with the European Union’s new laws regarding cryptocurrency assets. By December 30th, it is said to outline the first comprehensive regulatory framework for cryptocurrencies.

47 applications for a cryptocurrency operating license have been submitted by August 2024’s end, demonstrating the remarkable expansion of the country’s digital currency market. Notably, companies such as Binance TR, OKX TR, and Gate TR are among those showing interest, indicating Turkey’s burgeoning appeal in the crypto industry. Furthermore, the favorable regulatory environment in this nascent market is anticipated to draw even more attention.

These applications originated following the enactment of an amendment to the Capital Markets Law in July 2024. This amendment established a regulatory system for providers of cryptocurrency services. While using cryptocurrencies was outlawed since 2021, Turkish citizens have persistently engaged in purchasing, holding, and trading digital assets.

This phase demonstrates Turkey’s dedication to combating financial crimes concurrently with establishing a clearer regulatory landscape for its cryptocurrency industry. Fresh regulations enhance transparency among cryptocurrency service providers, thereby fostering market stability.

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2024-12-27 14:47