Among the growing number of crypto-friendly countries comes Turkey, one of the places where the government is happy with crypto investors and traders. In 2023, this country was leading the global crypto market in fourth place with $170 billion in trading volume. In June 2024, Turkey made amendments to its Capital Markets Law, allowing the Capital Markets Board (CMB) to regulate crypto. Now, the country’s finance ministry is tightening crypto rules. And, what are they?
Turkey’s latest regulatory developments in crypto
As mentioned, crypto is a chosen industry in the eyes of the current government. The new crypto rules are solely for stopping money laundering and other illicit activities. The new proposed measures require crypto companies to share detailed information on the purpose and origin of every transaction. At the outset, the rules may look a little hectic for crypto firms, but that’s not the reality. The government wants to protect crypto firms and investors from illegal betting and fraud.
In short, the new regulations require companies to answer:
- Where is the money coming from? — source
- Why is the transaction happening? — purpose
Finance Minister Mehmet Simsek wrote in an X post: “We are taking new steps to prevent the laundering of criminal proceeds from illegal betting and fraud through crypto asset transactions. Administrative, legal, and financial sanctions will be imposed on platforms that do not comply.”
The regulations also require crypto users to provide a transaction description of a minimum of 20 characters for each transfer. Crypto withdrawals will face delays of 48 hours, while the first withdrawal from any account may cause a 72-hour delay.
Regulation on stablecoin payments
The new crypto regulations are part of the 2024 bill, through which crypto rules started taking effect in the country. The new rule will also regulate stablecoin transfers, setting daily and monthly limits to prevent crypto crimes like illegal betting and fraud.
But wait, some companies are excepted from these limits! A crypto platform complying with the Travel Rule is permitted to offer higher limits on stablecoin transfers, meaning they can pay double the threshold. Likewise, in situations when the Travel Rule does not apply, the platforms have to face transaction delays.
Travel Rule is a set of rules that requires crypto companies to gather and share complete information about the sender and receiver taking part in a transaction.
Turkey intends to go with global crypto standards
The nature of Turkey’s crypto regulatory framework says it all! The key aim could be to align well with the European Union’s MiCA, Dubai’s VARA, and other regulatory bodies. Earlier in March, Turkey implemented newly regulated services for Crypto Assets Service Providers (CASPs). Under this rule, CMB-authorized CASPs are permitted to offer crypto services such as execution, clearing, and settlement of crypto transactions, custody and management of crypto assets, investment advisory services, and more.
