• Turkey introduces new AML regulations requiring user identification for crypto transactions over 15,000 lira ($425).
• Crypto service providers must collect information for transactions with unregistered wallet addresses starting February 2025.
• Turkey’s crypto market ranks fourth globally, with a trading volume of $170 billion as of September 2023.

Turkey has unveiled new cryptocurrency regulations to combat money laundering and terrorism financing. The new measures were detailed in a December 25 publication in the Official Gazette of the Republic of Turkey. They introduce stricter oversight for crypto transactions exceeding 15,000 Turkish lira (approximately $425).

Key Provisions and Implementation Timeline

Notably, the new AML regulations are set to go into effect on February 25, 2025. Under these rules, crypto service providers must collect identifying information from users engaging in transactions above the $425 threshold. Additionally, transfers originating from unregistered wallet addresses will now require verification. 

If a provider cannot obtain the required details from a sender, the transaction could be categorized as “risky.” In such cases, the service provider will have the option to halt or limit the transaction. According to the new bill, insufficient information could lead to the termination of the business relationship with the sender.

Turkey’s Growing Crypto Market

As of September 2023, Turkey ranked as the fourth-largest crypto market globally, with a trading volume estimated at $170 billion, surpassing countries like Russia and Canada, according to Chainalysis.

In 2024, Turkish crypto firms have been increasingly active, with the Turkish Capital Markets Board (CMB) receiving 47 license applications from crypto companies by August. This surge in applications followed the enactment of the “Law on Amendments to the Capital Markets Law” in July, which provided a more structured framework for crypto asset service providers operating in the country.

A Regional and Global Context

Turkey’s move comes as global focus increases on cryptocurrency regulation. Europe’s Markets in Crypto-Assets (MiCA) framework takes effect December 30, 2024. This is the world’s first comprehensive crypto regulatory bill.

Turkey’s new rules seem inspired by these international developments. Turkey continues to grow as a significant player in the crypto economy.