Turkey Introduces Stringent Cryptocurrency Regulations Targeting Money Laundering and Terrorism Financing

The new rules, which will take effect on February 25, 2025, require users conducting transactions exceeding 15000 Turkish lira (approximately $425) to provide identifying information to crypto service providers.

Turkey has unveiled a new set of cryptocurrency regulations to combat illicit activities like money laundering and terrorism financing. The rules, effective February 25, 2025, mandate users to provide identifying information for transactions exceeding 15,000 Turkish lira ($425).

Cryptocurrency users in Turkey must now provide ID for transactions over $425.

The move aligns Turkey with global trends in crypto regulation, inspired by frameworks like Europe’s Markets in Crypto-Assets (MiCA) bill, which comes into effect on December 30, 2024.

The regulations require crypto service providers to collect user information for unregistered wallet addresses. Transactions where identifying information cannot be verified may be classified as “risky.” In such cases, providers can halt transfers, limit interactions, or terminate business relationships.

These measures are part of Turkey’s broader strategy to regulate its booming cryptocurrency market, which recorded a staggering $170 billion in trading volume as of September 2023, making it the fourth-largest crypto market globally, according to Chainalysis.

While crypto trading remains legal, the use of digital assets for payments has been restricted since 2021. Alongside the new AML measures, Turkey is reportedly considering a 0.03% tax on crypto profits to bolster its national budget.

The stricter regulations arrive amid growing interest in cryptocurrencies worldwide. With Bitcoin recently surpassing $100,000, Turkey’s proactive stance aims to attract legitimate investors while deterring misuse.

The new cryptocurrency regulations in Turkey are designed to curb illicit activities and align the country with global trends in crypto regulation. The measures aim to strike a balance between fostering innovation and protecting citizens from financial risks.