Turkey plans to implement new regulatory measures for cryptocurrency operations, effective February 2025. The main goal is to combat money laundering and terrorism financing.
New Identification Requirements
Under the new regulations, users conducting transactions over $425 will be required to provide full personal identification information. This aims to enhance transparency and traceability in the crypto space. Additionally, crypto exchanges in Turkey will be mandated to collect and verify personal data before processing any transactions, especially through unregistered wallets.
International Standards and the Travel Rule
Starting December 30, 2024, all crypto withdrawals and deposits within the European Union will adhere to new regulations. The Travel Rule mandates that Virtual Asset Service Providers (VASPs) collect and share sender and recipient information for all crypto transactions. This measure aims to enhance transparency and security in crypto transactions, aligning the EU with global standards.
Impact of New Measures on the Crypto Market
These measures may impact users as transactions lacking sufficient identification details will be flagged as 'risky' and potentially suspended. This could cause potential disruptions in trading and transferring assets. However, these precautions aim to prevent illegal use of crypto transactions and provide authorities with tools to trace funds across digital platforms.
The tightening of cryptocurrency regulations in Turkey and the adoption of global standards in the EU aim to strengthen control over financial flows associated with cryptocurrencies and combat unlawful activities in this market.
