In December 2024, Turkey announced new cryptocurrency regulations, inspired by global advances, including the European MiCA framework.
Turkey's Cryptocurrency Regulation Update
According to a December 25 document published in the Official Gazette of the Republic of Turkey, users conducting transactions exceeding 15,000 Turkish lira ($425) are required to provide identifying information to crypto service providers. The Anti-Money Laundering (AML) regulations aim to prevent illicit fund laundering and terrorism financing through cryptocurrency transactions. However, information collection for transactions below the $425 threshold is not mandatory.
Targeting 'Risky' Crypto Transactions
Turkey's regulations, effective February 25, 2025, also require service providers to verify information from customers using unregistered wallet addresses. Transfers without sufficient sender information may be flagged as 'risky.' The new law involves considering the possibility of not performing the transfer or limiting transactions with the financial institution in question or terminating the business relationship if sufficient information is not obtained.
Regulations Drive Activity in Turkey
As of September 2023, Turkey ranked as the fourth-largest crypto market globally, surpassing markets like Russia and Canada with an estimated trading volume of $170 billion. In 2024, Turkish crypto firms ramped up activity, with 47 license applications submitted to the Turkish Capital Markets Board (CMB). The July implementation of the 'Law on Amendments to the Capital Markets Law' laid the foundation for a regulatory framework for crypto service providers.
The introduction of new cryptocurrency rules in Turkey aligns with a global trend for stricter crypto oversight and could significantly impact the country's market.
