Turkey is implementing strict new regulations for the crypto sector aimed at combating money laundering and illegal financial activities.
New Requirements for Crypto Platforms
The Turkish Ministry of Treasury and Finance has proposed requiring crypto platforms to collect detailed information about the source and purpose of each transaction. Users will need to include a minimum 20-character description for every transfer, aimed at enhancing transparency and traceability in crypto dealings.
Transfer Limitations
The proposed regulations introduce mandatory withdrawal delays: 48 hours for most crypto asset withdrawals and 72 hours for the first ever withdrawal from an account. These holding periods are designed to give platforms more time to flag suspicious activity. Additionally, strict limits on stablecoin transfers are planned, capping users at $3,000 daily and $50,000 monthly if the Travel Rule is not observed.
Consequences of Non-Compliance
The ministry warned of serious consequences for non-compliance, which can include administrative penalties and legal or financial sanctions, including the revocation of operating licenses. Exceptions to the transfer limits will be granted for transactions related to market making and arbitrage, provided that users can verify the source of their funds.
Treasury and Finance Minister Mehmet Şimşek emphasized that the reforms are not intended to hinder legitimate crypto activity but to deter its misuse.
