Turkey Unveils Strict Crypto Rules for 2025

Turkey has announced new cryptocurrency regulations aimed at enhancing anti-money laundering (AML) efforts to align with global standards.

This new legislation, set to be enforced by February 2025, is modeled after regulatory efforts in key global markets, especially the European Union’s Markets in Crypto-Assets (MiCA) framework.

The new rules mandate that Turkish cryptocurrency service providers gather identifying information from users who conduct transactions exceeding 15,000 Turkish lira (about $425). If providers are unable to gather enough information from the user, they have the option to classify the transaction as “risky” and suspend it if needed.

The new laws arrive amid increasing scrutiny of the cryptocurrency sector, driven by Turkey’s rising influence in global markets. They also align with a broader international shift toward tighter scrutiny of money laundering activities within the crypto space.

Moreover, the regulations also address several key aspects of crypto services, including mandatory licensing, measures to curb market manipulation, and the requirement for service providers to establish formal written agreements with customers.

Since mid-2024, the Capital Markets Board (CMB) has seen a significant rise in applications as firms seek to operate legally within the country. Forty-seven companies, including major exchanges like Bitfinex, Binance TR, OKX TR, and Gate TR, have applied for operating licenses under the new framework.

The renewed interest from crypto exchanges in obtaining licenses is driven by the implementation of the “Law on Amendments to the Capital Markets Law.”

In parallel, the Scientific and Technological Research Council of Turkey (TÜBİTAK) will conduct audits on the technological systems used by cryptocurrency companies.

While these regulations aim to strengthen consumer protection and safeguard Turkey’s financial system from illegal activities, experts caution that they may have unintended consequences. The stringent compliance requirements could hinder innovation and present challenges for smaller startups, potentially driving up operational costs.

Although Turkey has prohibited the use of cryptocurrencies for payments since 2021, individuals are still allowed to buy, hold, and trade digital assets. This restriction has not stopped the country from being an active player in global crypto, as many Turkish citizens continue to invest in cryptocurrencies as an alternative form of wealth preservation and investment.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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