Turkey Tightens Crypto Regulations to Combat Financial Crime

Turkey is set to implement stricter regulations on cryptocurrency transactions in an effort to combat money laundering and financial crime. This initiative follows information obtained by the state-run Anadolu Agency (AA).

Proposed Measures for Crypto Transactions

Under the new regulations, cryptocurrency platforms will be mandated to collect comprehensive information on the origin and purpose of every transaction. Users will be required to provide a transaction description of at least 20 characters for each transfer, according to a report by AA.

In addition, platforms will need to enforce holding periods on cryptocurrency withdrawals when the Travel Rule is not applicable. This includes a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account.

These regulations are part of a broader initiative by the Ministry of Treasury and Finance to tighten oversight of crypto asset service providers (CASPs).

Daily and Monthly Limits on Stablecoin Transfers

The ministry plans to introduce daily and monthly limits on stablecoin transfers to prevent the rapid outflow of illicit funds, particularly from illegal activities such as betting and fraud. Users will be restricted to $3,000 per day and $50,000 per month.

Platforms that fully comply with the Travel Rule obligations, including collecting complete sender and recipient identity details, will be allowed to apply these limits at double the threshold.

Treasury and Finance Minister Mehmet Şimşek emphasized that the aim is to curb criminal misuse without hindering legitimate activity. “Left-wing space for legitimate crypto asset activities will be maintained,” he stated.

Şimşek added that platforms failing to comply with the new regulations may face various legal and financial sanctions, including administrative penalties, denial of license, or cancellation.

Notably, transfers related to liquidity provision, market making, and arbitrage, where users can prove the source of funds, will be exempt from these limits, provided they are monitored under the responsibility of the relevant platform.

Aligning Turkish Crypto Rules with Global Standards

The proposed regulations represent one of Turkey’s most comprehensive efforts to align its cryptocurrency rules with international standards, including frameworks such as the European Union’s Markets in Crypto-Assets (MiCA) framework.

In March, Turkey’s Capital Markets Board (CMB) introduced licensing and operational rules for CASPs. This framework grants the CMB full authority over crypto exchanges, wallet providers, and custodians, thereby aligning national oversight with global regulatory standards.

The rules establish strict requirements for setting up CASPs in Turkey, including criteria for executive backgrounds, shareholder structures, and minimum capital thresholds. Crypto exchanges are required to hold at least $4.1 million in capital, while custodians need $13.7 million.

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