Turkiye Introduces Stricter Regulations for Cryptocurrency Exchanges
Turkiye has recently announced new regulations for cryptocurrency exchanges, aiming to enhance transparency and security in the financial ecosystem. The regulations, published in the Official Gazette, require exchanges to comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations. One of the key requirements is that transfers over 15,000 TL must include detailed sender information, highlighting the government’s commitment to strict compliance measures.
New Regulatory Framework for Cryptocurrency Exchanges
In a significant development, Turkiye has implemented comprehensive regulations for cryptocurrency exchanges to combat money laundering and terrorism financing. Exchanges are now classified as "liable entities" under the Financial Crimes Investigation Board (MASAK) regulations, imposing strict obligations on them. These include mandatory customer transaction monitoring and the implementation of compliance programs within a month of the regulation’s enactment.
Compliance Obligations and Deadlines
Cryptocurrency exchanges must appoint a compliance officer and establish AML programs within 30 days to align with international best practices. Customer identity verification will involve confirming names, national ID numbers, and other personal details through the Ministry of Interior’s Identity Sharing System (KPS). These measures aim to minimize illicit financial activities and ensure regulatory compliance.
Transaction Monitoring and Enhanced Customer Due Diligence
Exchanges are required to verify sender information for transactions exceeding 15,000 TL, including full name, trade registry record, and wallet address. Inter-exchange transfers face additional scrutiny, with transactions being reversed if sender information cannot be verified. This threshold balances operational feasibility with regulatory compliance to maintain transparency in transactions.
Stricter Relationships Between Financial Institutions and Crypto Exchanges
Financial institutions must seek executive-level approval before engaging with crypto exchanges to mitigate risks associated with crypto transactions. Continuous transaction monitoring, transaction limits, and tailored risk management policies are mandated to enhance security and compliance within the financial ecosystem.
Asset Freezing and Risk Management
To prevent the misuse of cryptocurrencies for illicit activities, exchanges must follow asset freezing decisions and conduct detailed risk assessments. Existing customers must complete the compliance process within four months, failing which their accounts will be suspended to safeguard against potential risks.
Remote Identity Verification Guidelines
Remote identity verification is tightly regulated, with exchanges only allowed to use it as a supplementary tool under specific conditions. Initial deposits or withdrawals must be routed through verified bank accounts under the customer’s name to prevent fraudulent activities during the onboarding process.
In Conclusion
Turkiye’s new regulations demonstrate a commitment to creating a secure and transparent cryptocurrency ecosystem. By imposing stringent measures, the government aims to protect financial integrity and encourage responsible growth within the industry. Compliance with these regulations not only enhances the credibility of crypto exchanges but also safeguards users against potential risks. The industry is expected to adapt to these changes, fostering a more regulated and secure market environment.
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