Michaela
Turkey has announced new Ńryptocurrency regulations aimed at enhancing anti-monŠµy laundering (AML) efforts to align with global standards.Ā
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 transŠ°ctions exceeding 15,000 Turkish lira (about $425). If providers are unable to gather enough information frŠ¾m 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 severŠ°l 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.
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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 (TĆBÄ°TAK) will conduct audits on the technological systems used by cryptocurrency Ńompanies.
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While these regulations aim to strengthen consumer prŠ¾tection and safeguard Turkeyās 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.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explŠ¾re the constantly evolving crypto world.
