Forwarded the Original Title: Turkey Strengthens Crypto Anti-Money Laundering Regulations: New Rule Explained and Industry Impact

With the rapid development of the global cryptocurrency market, Anti-Money Laundering (AML) and compliance regulations have become a growing focus for governments worldwide. Recently, the Turkish government announced a series of stricter AML regulations targeting cryptocurrency activities, an initiative that has quickly drawn significant industry attention. These new rules, set to take effect on February 25, 2025, signal Turkey’s determination to regulate the crypto industry while also providing a valuable reference for global compliance efforts.

Key Provisions: Enhancing Transparency and Transaction Security

The Turkish government issued an announcement on December 25, 2024, clarifying the main provisions of the new anti-money laundering regulations, focusing on transaction threshold setting, risky transaction processing and restrictions on unregistered wallets, striving to improve the transparency and security of cryptocurrency transactions.

Türkiye’s New Cryptocurrency Regulations

Source: Official Gazette of the Republic of Turkey

1. Transaction Thresholds

Under the new rules, users conducting cryptocurrency transactions exceeding 15,000 Turkish Lira (approximately $425) must submit full identification to service providers. For transactions below this threshold, service providers may collect information at their discretion. This measure seeks to ensure traceability for large transactions, effectively curbing the flow of illicit funds.

2. Handling High-Risk Transactions

If a crypto sender fails to provide sufficient information, their transactions will be flagged as “high risk.” In such cases, service providers are granted the authority to take various actions, including rejecting the transaction, limiting cooperation with related financial institutions, or even terminating the business relationship with the counterparty. This provision gives service providers greater discretion to maintain the overall security of the transaction ecosystem.

3. Restrictions on Unregistered Wallets

Unregistered wallet addresses are subject to stricter oversight. Service providers must collect identity information from senders; otherwise, such transactions will be restricted. This measure targets illegal activities such as money laundering and terrorism financing commonly conducted through anonymous wallets.

Through these measures, the Turkish government aims to establish a more transparent and secure trading environment in the cryptocurrency sector, laying the foundation for the industry’s future regulatory development.

Global Context: Alignment with the MiCA Framework

Turkey’s new regulations come at a time when the global cryptocurrency industry is undergoing significant regulatory changes. The Markets in Crypto-Assets (MiCA) regulation in the European Union, which takes effect on December 30, 2024, is recognized as the world’s first comprehensive regulatory framework for crypto assets.

Turkey’s new rules clearly draw on advanced international regulatory practices like MiCA, signaling its intent to align with global standards in crypto compliance. This alignment not only enhances the attractiveness of Turkey’s market but also provides international investors with a more trustworthy trading environment. Furthermore, stricter regulations are essential for combating cross-border financial crimes such as money laundering and terrorism financing.

Industry Impact: Turkey’s Compliance Path and Market Outlook

As the world’s fourth-largest cryptocurrency market, Turkey recorded a trading volume of $170 billion in 2023, surpassing both Russia and Canada, demonstrating its significant position in the cryptocurrency sector. However, Turkey still faces numerous challenges in balancing regulation and market development. While buying, holding, and trading cryptocurrencies is legal in Turkey, using cryptocurrency as a payment method has been prohibited since 2021. This means that while investors can freely trade, they cannot directly use cryptocurrencies for everyday transactions.

Turkey’s cryptocurrency market shows strong growth momentum, driven by its unique economic environment and strong public demand for digital assets. The country has long faced high inflation and currency depreciation issues, which has led more and more people to view cryptocurrencies as a tool for hedging risks and protecting wealth. However, the Turkish government maintains a cautious attitude towards cryptocurrencies. Despite allowing legal trading, the restrictions on payment scenarios indicate that regulators are still trying to balance innovation with risk control.

1. Driving Market Standardization

The new regulations will significantly enhance market transparency and transactional security, boosting investor confidence in crypto assets. Under a more regulated market environment, participants will enjoy higher-quality services, further promoting healthy market development.

2. Accelerating Corporate Compliance

As of December 2024, 77 cryptocurrency companies have applied for operating licenses from Turkey’s Capital Markets Board. This reflects the industry’s proactive response to the new regulations and sets the stage for broader market participation in the future.

3. Long-Term Growth Potential

While the new rules impose certain limitations on specific trading activities, Turkey’s tax policies remain favorable. For example, profits from crypto assets are not taxed, and only a 0.03% transaction tax is applied, signaling government support for market growth. This balanced regulatory approach will likely support the long-term development of Turkey’s crypto market.

Beosin KYT: Support Web3 Security and Compliance

Amid the global wave of stricter crypto regulations, compliance tools are becoming increasingly important. As a leader in Web3 security and compliance, Beosin’s Know Your Transaction (KYT) system provides comprehensive compliance support for cryptocurrency service providers.

Real-Time Transaction Monitoring

Beosin KYT can detect high-risk transactions and suspicious wallet addresses, helping service providers block illegal fund flows in real time and reducing the risk of financial crime.

Comprehensive Compliance Solutions

The system complies with AML regulations in multiple countries, enabling businesses to quickly adapt to new rules in markets like Turkey and meet both local and international compliance standards.

Customized Services

For high-growth markets like Turkey, Beosin offers localized support to help businesses address regulatory challenges while reducing compliance costs through efficient tools.

A New Era of Transparency and Security for the Crypto Industry

Turkey’s new regulations mark a critical step in the global cryptocurrency industry’s transition from “wild growth” to “regulated development.” By strengthening AML measures and aligning with international standards, Turkey is laying the groundwork for a safer and more transparent crypto ecosystem. In this process, compliance technologies like Beosin KYT will play a pivotal role in driving the industry’s sustainable growth. As more countries adopt regulatory frameworks, the crypto industry is poised to thrive in an environment of enhanced security and transparency, unlocking broader opportunities for innovation and expansion.

Reference:

https://cointelegraph.com/news/turkey-new-crypto-regulation-aml-2024

https://cointelegraph.com/learn/articles/cryptocurrency-laws-and-regulations-in-turkey

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