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Turkey introduces a new AML regulation requiring user identification for cryptocurrency transactions exceeding 15,000 lira (425)
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Starting February 2025, crypto service providers will be required to collect information on transactions involving unregistered wallets.
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The crypto market in Turkey ranks fourth worldwide, with a trading value of $170 billion by September 2023.
The new regulations were introduced by the Turkish government to combat money laundering, terrorism financing and other criminal activities. The new measures were published in the Official Gazette of the Republic of Turkey on December 25, 2017. They introduce stricter supervision for crypto transactions that exceed 15,000 Turkish Lira (approximately $400).
Key Provisions and Implementation Schedule
The new AML regulations will be in effect on February 25, 2020. These rules require crypto service providers to collect identifying data from users who engage in transactions exceeding $425. Transfers originating from non-registered wallets will also require verification.
In cases where a service provider is unable to obtain the necessary details from the sender, they may classify the transaction as “risky”. They will then have the option of stopping or limiting the transaction. According to the new bill insufficient information can lead to the termination or the business relationship.
Turkey’s Growing Crypto Market
According to Chainalysis, Turkey was the fourth largest crypto market in the world as of September 2023. Its trading volume is estimated at $170 billion. This surpasses countries like Russia and Canada.
Turkish crypto firms are becoming more active in 2024. The Turkish Capital Markets Board (CMB), received 47 license applications by crypto companies as of August. This surge of applications followed the July enactment by the Turkish Capital Markets Board (CMB) of the “Law on Amendments To The Capital Markets Law”, which provided a more organized framework for crypto asset services providers operating in Turkey.
Contexts Regional and Global
Turkey’s move comes at a time when global attention is increasing on cryptocurrency regulation. The European Markets in Crypto-Assets framework (MiCA), which takes effect on December 30, 2024, is a new regulatory framework for cryptocurrency assets. This is the first comprehensive crypto regulation bill in the world.
These international developments seem to have inspired the new rules in Turkey. Turkey is becoming a major player in the crypto-economy.
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