Turkey is tightening its grip on cryptocurrency transactions in a bid to crack down on money laundering and other financial crimes. The country’s Ministry of Treasury and Finance is implementing new restrictions that require cryptocurrency platforms to collect more information about transactions they handle. Users will now have to provide details about the source of funds and the purpose of each transfer, as well as include a transaction note of at least 20 characters for every cryptocurrency transfer.
In addition to reporting requirements, platforms will also have to implement delays on withdrawals in cases where the Travel Rule, which mandates the exchange of full sender and recipient information, isn’t triggered. Most withdrawals will be held for 48 hours, with first-time withdrawals from new accounts delayed for 72 hours.
The Ministry of Treasury and Finance’s efforts to enhance oversight of cryptocurrency asset service providers (CASPs) also include limits on stablecoin transfers. To combat the movement of illegal funds, especially those associated with fraud and illegal betting, users will be restricted to $3,000 per day and $50,000 per month in stablecoin transactions. Platforms that comply with the Travel Rule and collect complete sender and recipient details may offer higher transfer limits.
Treasury and Finance Minister Mehmet Şimşek emphasized that the goal is to combat criminal activity while safeguarding legitimate cryptocurrency asset activities. Platforms that fail to adhere to the new regulations could face penalties such as fines, license denial, or cancellation.
Certain types of transfers, such as market making, liquidity provision, and arbitrage activities, will be exempt from the new limits, provided that users can demonstrate the source of funds and the platform maintains records.
These measures align with Turkey’s previous efforts to regulate the cryptocurrency sector, including the introduction of licensing and operational rules for CASPs by the Capital Markets Board (CMB) in March. The framework imposes minimum capital requirements for cryptocurrency exchanges and custodians, as well as rules regarding executive backgrounds and shareholder structures.
By implementing these regulations, Turkey is aiming to bring its cryptocurrency rules in line with global standards, including the EU’s Markets in Cryptocurrency-Assets (MiCA) framework. This comprehensive approach reflects Turkey’s commitment to combating financial crimes while supporting the legitimate use of cryptocurrencies.
(Photo by Michael Jerrard)
Tags: blockchain, cryptocurrency, money laundering