Turkey has introduced strict crypto AML regulations

Turkey has introduced new crypto regulations in the last week of 2024, inspired by positive regulatory developments in the world's major states, including Europe.

Under the new regime, users who make transactions above 15,000 Turkish lira ($425) will be required to share their credentials with the country's crypto service providers, according to a document published in the Republic of Turkey's official gazette on Dec. 25.

The new Anti-Money Laundering (AML) Act aims to prevent money laundering and terrorist financing through cryptocurrency transactions.

Crypto service providers are not required to collect data for digital asset transfers below $425.

Turkey's new regulatory bill comes amid growing interest in crypto regulation, a week ahead of the world's first comprehensive crypto regulatory framework, the European Markets in Crypto-Assets (MiCA) Bill, which will take effect in December. 30.

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Will Turkish crypto service providers stop “dangerous” crypto transactions?

Turkey's new laws will take effect on February 25, 2025.

After the implementation, crypto service providers will have to collect identifying information from customers using wallet addresses not previously registered by them.

If the provider is unable to collect the necessary information from the sender, the crypto transfer may be classified as “risky”, allowing the provider to consider terminating the service.

“If sufficient information cannot be obtained, cases of not making the transfer or limiting transactions with the financial institution in question or terminating the business relationship will be considered.”

In the year As of September 2023, Turkey was the world's fourth-largest crypto market, with an estimated $170 billion in trading volume, surpassing major markets such as Russia and Canada, according to Chinalysis.

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Turkish crypto regulations: what you need to know

Last year, 2024 brought renewed activity among Turkish crypto companies as the Turkish Capital Markets Board (CMB) received 47 license applications from crypto companies until August under the new regulation.

The wave of applications followed the implementation of the “Capital Market Law Reform Act” which came into effect on July 2. This law was intended to provide a regulatory framework for crypto asset service providers.

Cryptocurrency trading laws in Turkey allow individuals to buy, hold and trade crypto, but using it for payment will be banned from 2021.

While Turkey does not tax crypto profits, it is considering a small transaction tax of 0.03% to bolster the national budget.

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