Turkey Unveils New Anti-Money Laundering Rules Targeting Crypto Transfers Exceeding $425

The new regulations take their cue from similar global efforts such as Europe's upcoming Markets in Crypto-Assets (MiCA) framework.

Turkey has unveiled new Anti-Money Laundering (AML) regulations for crypto transactions, stipulating that users must provide identifying information for transactions exceeding 15,000 Turkish lira (around $425). These regulations aim to enhance oversight and curb illicit activities involving digital assets.

The new rules, published in the Official Gazette of the Republic of Turkey on Wednesday, come into effect on Feb. 25, 2025. Service providers are required to verify the identities of customers engaging in larger crypto transfers on this date. Transactions below the $425 threshold are exempt from this requirement.

Officials say this measure is designed to prevent money laundering and terrorist financing conducted through digital assets. The move follows Chainalysis ranking Turkey as the fourth-largest crypto market globally in September 2023, with trading volumes exceeding $170 billion.

The updated law also obligates crypto companies to collect detailed information from users transferring funds from previously unregistered wallet addresses. If providers fail to obtain sufficient user data, they are empowered to label the transaction as “risky.”

In such cases, businesses can halt the transfer, limit the scope of future transactions, or even terminate the relationship with the user. This step aims to heighten vigilance against suspicious activities and bolster public trust in Turkey's growing digital asset sector.

Turkey's new rules come in the wake of rising crypto adoption, with Chainalysis ranking the country as the fourth-largest crypto market globally in September 2023. Trading volumes exceeded $170 billion, underscoring the heightened significance of strict AML measures.

Over the past year, Turkish crypto firms have stepped up compliance efforts, with the country’s Capital Markets Board (CMB) receiving 47 license applications in 2024 alone. These applications followed the passage of the “Law on Amendments to the Capital Markets Law” in July, outlining regulations for digital asset providers.

Although crypto trading remains legal in Turkey, authorities have banned the use of digital assets for payments since 2021. Meanwhile, the government is reportedly contemplating a 0.03% transaction tax on crypto trades to boost national revenues. Thus far, profits from crypto trading remain untaxed, suggesting that more regulatory tweaks could be on the horizon.

The country's regulatory overhaul echoes broader developments in Europe, where MiCA will come into force on Dec. 30, 2024. By aligning its rules with global standards, Turkey aims to protect investors, secure its financial system, and maintain its position as a major crypto market. Officials hope that clear guidelines will encourage legitimate businesses while deterring criminal elements seeking to exploit digital currencies.

In a separate development reflecting concerns about fraudulent ventures, Turkish authorities recently arrested OmegaPro co-founder Andreas Szakacs. A Swedish national who acquired Turkish citizenship and changed his name to Emre Avci, Szakacs denies allegations that OmegaPro orchestrated a $4 billion Ponzi scheme. Local gendarmerie seized computers and 32 cold wallets during the arrest, tracing around $160 million worth of digital assets. OmegaPro reportedly collapsed in late 2022, triggering inquiries from regulators in multiple countries.

With the new AML rules taking effect in early 2025, many in Turkey's crypto sphere view this as a crucial step in shoring up the integrity of an expanding market. Observers suggest that the regulations will create a safer environment for both investors and businesses, even as the government continues to refine its oversight of digital asset activities