Turkey has rolled out new cryptocurrency regulations inspired by global developments, including Europe’s upcoming Markets in Crypto-Assets (MiCA) framework. The updated policies, detailed in a Dec. 25 publication by the Official Gazette of the Republic of Turkey, aim to combat financial crimes while accommodating the growing interest in digital assets.
Under the new regulations, cryptocurrency transactions exceeding 15,000 Turkish lira (approximately $425) require users to provide identifying information to local crypto service providers. The updated Anti-Money Laundering (AML) measures target the prevention of illicit fund transfers and terrorism financing.
For transactions below the $425 threshold, users remain exempt from this requirement, maintaining ease of access for smaller-scale traders and investors.
Risk Management for Unregistered Wallets
Starting next week, crypto service providers in Turkey will also need to monitor transactions involving wallet addresses not previously registered with their systems. If the required sender information is not obtained, the transaction could be flagged as “risky.”
The new bill empowers service providers to halt suspicious transfers or even terminate business relationships with non-compliant users. According to the regulation:
“In case sufficient information cannot be obtained, the issues of not performing the transfer or limiting the transactions made with the financial institution in question or terminating the business relationship will be considered.”
Turkey’s Growing Market Under Increased Scrutiny
Turkey’s regulatory push reflects its status as a major player in the global crypto market. As of September 2023, the country ranked as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, surpassing Russia and Canada, according to Chainalysis.
In 2024, Turkish crypto firms ramped up activity, submitting 47 license applications to the Turkish Capital Markets Board (CMB) by August. This followed the July 2 implementation of the “Law on Amendments to the Capital Markets Law,” which established a clearer regulatory framework for crypto service providers.
While the updated regulations enhance oversight, cryptocurrency use in Turkey remains somewhat restricted. A 2021 ban prohibits using digital assets for payments, though buying, holding, and trading crypto remains legal.
Additionally, the government has signaled potential changes to its tax policy, with discussions around introducing a minor 0.03% transaction tax to boost the national budget. Currently, Turkey does not tax crypto profits, making it an attractive market for traders.
Regulatory Momentum Aligns with Europe
Turkey’s regulatory overhaul coincides with Europe’s MiCA framework, set to take effect on Dec. 30. The alignment underscores a broader global trend toward comprehensive crypto regulations as governments seek to balance innovation with consumer protection and financial stability. As Turkey tightens its crypto policies, the move is expected to shape the dynamics of its burgeoning crypto market in 2025 and beyond.
