Türkiye strengthens anti-money laundering supervision of cryptocurrencies: interpretation of new regulations and industry impact

With the rapid development of the global cryptocurrency market, anti-money laundering (AML) and compliance supervision have gradually become the focus of attention of various countries. Recently, the Turkish government announced a series of stricter cryptocurrency anti-money laundering regulations, which quickly attracted widespread attention in the industry. These new regulations will officially take effect on February 25, 2025, demonstrating Turkey's determination in the field of cryptocurrency regulation, and also providing an important reference for the compliance development of the global market.

Interpretation of the new regulations: Strengthening information transparency and transaction security

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

Turkey's New Cryptocurrency Regulations

Source: Official Gazette of the Republic of Turkey

1. Transaction Threshold Setting

According to the new regulations, when users perform cryptocurrency transactions exceeding 15,000 Turkish liras (about 425 US dollars), they must submit complete identity information to the service provider. For transactions below this threshold, service providers can selectively collect relevant information. This regulation aims to ensure the traceability of large transactions, thereby effectively curbing the flow of illegal funds.

2. Handling of risky transactions

If the sender of cryptocurrency fails to provide sufficient information, its transaction will be marked as "high risk". The service provider has the right to take a variety of measures in this case, including refusing transactions, restricting cooperation with relevant financial institutions, and even terminating the business relationship with the trading party. This provision provides service providers with greater discretion and helps to improve the security of the overall trading system.

3. Restrictions on unregistered wallets

Wallet addresses that are not registered on the platform are also strictly regulated. Service providers need to collect the sender's identity information, otherwise the relevant transactions will be restricted. This measure is aimed at combating illegal activities carried out through anonymous wallets, such as money laundering and financing of terrorism.

Through the above measures, the Turkish government hopes to establish a more transparent and secure trading environment in the field of cryptocurrency and lay the foundation for the future standardized development of the industry.

Global Context: Alignment with the European MiCA Framework

Turkey’s new regulations come at a time when the global cryptocurrency industry is experiencing important regulatory changes. Europe’s Markets in Crypto-Assets Act (MiCA), which comes into effect on December 30, 2024, is considered the world’s first regulatory framework to fully cover crypto assets.

Turkey’s new regulations clearly draw on advanced international regulatory experience such as MiCA, marking its alignment with the world in terms of cryptocurrency compliance. This convergence with international norms not only helps to enhance the attractiveness of the Turkish market, but also provides a more credible trading environment for international investors. In addition, strengthening supervision is essential to address cross-border financial crimes such as money laundering and terrorist financing.

Industry Impact: Turkey's Compliance Path and Market Prospects

As the world's fourth largest cryptocurrency market, Turkey's trading volume in 2023 reached $170 billion, surpassing Russia and Canada, demonstrating its important position in the cryptocurrency field. However, Turkey still faces many challenges between regulation and market development. Although buying, holding and trading cryptocurrencies are legal in Turkey, using cryptocurrencies as a payment tool has been prohibited since 2021. This means that although investors can trade freely, they cannot directly apply cryptocurrencies to daily consumption scenarios.

Turkey's cryptocurrency market has shown strong growth momentum, which is inseparable from its special economic environment and the strong demand for digital assets among the people. Turkey has long faced problems with high inflation and currency depreciation, which has prompted more and more people to regard cryptocurrencies as a tool to hedge risks and protect wealth. However, the Turkish government is more cautious about cryptocurrencies. Although legal transactions are allowed, restrictions on payment scenarios indicate that regulators are still trying to balance innovation and risk control.

1. Promote market standardization

The new regulations will greatly improve market transparency and transaction security, and enhance investors' confidence in crypto assets. In a standardized market environment, participants can enjoy higher quality services, which will further promote the healthy development of the market.

2. Accelerate corporate compliance

As of December 2024, 77 cryptocurrency companies have applied to the Turkish Capital Markets Commission for operating licenses. This reflects the positive response of companies to the new regulations and lays the foundation for broader market participation in the future.

3. Long-term development potential

Although the new regulations set restrictions on some trading activities, the Turkish government has maintained an open attitude towards tax policy. For example, no tax is levied on crypto asset profits, and only a 0.03% transaction tax is levied, which shows support for market development. This balanced regulatory approach will help the long-term development of the Turkish crypto market.

Beosin KYT: Assisting Web3 security and compliance

Against the backdrop of escalating global crypto industry regulation, the importance of compliance tools has become increasingly prominent. As a leader in Web3 security and compliance, Beosin's KYT (Know Your Transaction) system provides cryptocurrency service providers with comprehensive compliance support.

Real-time monitoring of transactions

The Beosin KYT system can detect high-risk transactions and suspicious addresses, helping service providers to block illegal capital flows in real time and reduce the risk of financial crime.

Comprehensive compliance solution

The system has met the requirements of AML regulations in many countries and can help companies quickly adapt to new regulations in markets such as Turkey and meet local and international compliance standards.

Customized services

For high-growth markets such as Turkey, Beosin provides localized support to assist companies in meeting regulatory challenges and reduce compliance costs through efficient tools.

The crypto industry is moving towards a new stage of transparency and security

Turkey's new regulations mark an important step for the global cryptocurrency industry from "wild growth" to "regulated development". By strengthening anti-money laundering measures and aligning with international standards, Turkey has laid the foundation for building a more secure and transparent crypto ecosystem. In this process, compliance technologies such as Beosin KYT will become a key force in promoting the healthy development of the industry. In the future, as more countries join the ranks of regulators, the cryptocurrency industry is expected to usher in a broader development prospect in an environment with increasing security and transparency.

Reference:

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

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