Turkey has unveiled a set of enhanced regulations governing cryptocurrency activities, reflecting a global trend toward tighter oversight of digital assets. Announced in late December 2024, these measures draw inspiration from regulatory frameworks in major economies, particularly Europe.
The updated rules mandate that individuals conducting cryptocurrency transactions exceeding 15,000 Turkish lira (approximately $425) must provide their identification details to authorized crypto service providers. This requirement, detailed in a document published by Turkey’s Official Gazette on December 25, is designed to combat money laundering and the financing of terrorism.
Transactions below the $425 threshold are exempt from the requirement to collect identifying information, streamlining smaller-scale activity while maintaining a focus on high-value transfers.
These developments align with heightened global interest in cryptocurrency regulation, coming just days before Europe’s landmark Markets in Crypto-Assets (MiCA) framework is set to take effect on December 30, 2024. Turkey’s rules are scheduled for implementation on February 25, 2025.
Implications for “Risky” Transactions
Under the new framework, Turkish crypto service providers will also need to verify identifying information for wallet addresses not previously registered with their platforms. Transfers from unverifiable sources may be flagged as “risky,” potentially leading providers to suspend or terminate such transactions.
The regulatory text specifies that if sufficient information cannot be obtained, options include refusing the transfer, restricting related activities, or ending the business relationship altogether. This measure aims to bolster security and compliance within Turkey’s rapidly growing crypto sector.
Turkey’s Expanding Crypto Market
As of late 2023, Turkey ranked as the world’s fourth-largest cryptocurrency market, with an estimated trading volume of $170 billion, surpassing notable markets like Russia and Canada, according to Chainalysis.
In 2024, regulatory momentum in Turkey accelerated, with the Capital Markets Board (CMB) receiving 47 license applications from crypto firms by August. This surge followed the enactment of the “Law on Amendments to the Capital Markets Law” in July, which established a clearer regulatory environment for digital asset service providers.
While Turkey permits the trading and holding of cryptocurrencies, their use for payments has been banned since 2021. Additionally, while crypto profits remain untaxed, authorities are considering a modest 0.03% transaction tax to boost national revenues.
Key Takeaways
Turkey’s latest measures signify a significant step toward aligning its cryptocurrency ecosystem with global standards. The emphasis on enhanced transparency and compliance reflects broader efforts to mitigate risks associated with digital assets while fostering a robust regulatory framework for future growth.
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