Turkey is strengthening its cryptocurrency regulations with the introduction of new Anti-Money Laundering (AML) measures set to take effect on February 25, 2025. The new regulations, published in the Official Gazette of the Republic of Turkey on December 25, 2024, require crypto service providers to collect identifying information from users making transactions above 15,000 Turkish lira ($425). This move aims to combat money laundering and the financing of terrorism, two areas of concern for global regulators in the rapidly expanding crypto market.
The new rules specifically focus on improving transparency in cryptocurrency transactions. While transactions under the 15,000 Turkish lira threshold will not require identification, providers must collect details for larger transactions. This will help ensure that the users behind significant transfers are traceable, addressing growing concerns over illegal financial activities conducted via cryptocurrency. The regulations also stipulate that if providers are unable to obtain sufficient information about a user or transaction, the transfer may be flagged as “risky,” potentially leading to a halt in the transaction.
In addition to the identification requirement, Turkish crypto service providers will be obligated to verify wallet addresses that have not been previously registered. If these wallets are linked to transactions involving unidentified users, the service providers are empowered to block the transaction or limit services. This is aimed at preventing crypto transactions from being used for illicit purposes, further strengthening Turkey’s stance against illegal crypto activities.
The announcement comes during a period of global regulatory shifts, as Europe’s Markets in Crypto-Assets (MiCA) framework is set to take effect just days before Turkey’s regulations begin. With a crypto market that ranks as the fourth-largest globally, Turkey is tightening its oversight to prevent misuse while maintaining a favorable environment for the burgeoning industry. Crypto firms in the country are already adapting, with many having applied for licenses under Turkey’s new capital markets law, signaling a growing effort to comply with national and international standards in the crypto space.
