In a significant move to enhance cryptocurrency regulation, Turkey has introduced stricter Anti-Money Laundering (AML) regulations that will take effect on February 25, 2025. These new regulations are designed to curb illicit activities linked to cryptocurrency transactions, drawing inspiration from the regulatory advancements seen across major global jurisdictions, especially in Europe.
Under the new regime, Turkish crypto service providers will be required to collect identifying information from users making transactions exceeding 15,000 Turkish liras (approximately $425). This is a pivotal step towards ensuring transparency and accountability in the crypto market. Transactions below this threshold will not necessitate user identification, allowing for smaller trades to remain relatively easy.
As Turkey ranks as the fourth-largest cryptocurrency market globally, with an estimated trading volume of $170 billion as of September 2023, the adoption of such regulations signals a growing maturity in the sector. The rise in the number of license applications submitted to the Turkish Capital Markets Board (CMB)—which saw 47 applications filed since the beginning of the year—demonstrates the country’s proactive stance in the evolving digital asset landscape.
In addition to requiring user identification for larger transactions, the new regulations grant providers the authority to suspend transactions deemed “risky”. Should a crypto service provider not obtain sufficient information from a transaction sender, they may either halt the transfer or impose limitations on the transactions. This precaution aims to fortify the integrity of the financial system against potential threats associated with money laundering and terrorism financing through cryptocurrencies.
Despite the limitations on cryptocurrency usage, Turkey’s regulatory integration provides a framework that allows individuals to trade, hold, and buy cryptocurrencies while laying the groundwork for future enhancements. While no tax is applied to cryptocurrency profits, the government is contemplating a minor 0.03% transaction tax to support its national budget.
