Inspired by positive regulatory developments in major jurisdictions around the world, including Europe, Turkey introduced new cryptocurrency regulations in the last week of 2024.
Under the new regime, users executing transactions worth more than 15,000 Turkish lira ($425) will have to share their identifying information with the country’s cryptocurrency service providers, according to a December 25 document published by the Official Gazette of the Republic of Turkey.
New anti-money laundering (AML) regulations aim to prevent illicit money laundering and terrorist financing through cryptocurrency transactions.
New cryptocurrency regulations. Source: Official Gazette of the Republic of Türkiye
Cryptocurrency service providers are not required to collect information about digital asset transfers below the $425 limit.
Türkiye’s new regulatory bill comes at a time of growing interest in cryptocurrency regulation. This comes just a week before Europe’s Markets in Cryptocurrency Assets (MiCA) legislation, the world’s first comprehensive cryptocurrency regulatory framework, takes effect in December. .30.
relevant: PancakeSwap closed the year on record with $310 billion, up 179%, driven by L2 and DeFi growth.
Will Turkish cryptocurrency service providers stop trading “risky” cryptocurrencies?
Türkiye’s new regulations are scheduled to come into effect on February 25, 2025.
After implementation, cryptocurrency service providers will be required to collect identifying information from customers using previously unregistered wallet addresses.
Cryptocurrency transfers could be classified as “risky” if the provider is unable to collect the necessary information from the sender, and the new law would allow service providers to consider stopping the transfer.
“If sufficient information cannot be obtained, we will consider issues such as restricting transactions with the relevant financial institution, not making transfers, or terminating the business relationship.”
According to Chainalytic, as of September 2023, Turkey was the fourth largest cryptocurrency market in the world with an estimated trading volume of $170 billion, surpassing major markets such as Russia and Canada.
relevant: Cryptocurrency hacking will result in losses of $2.3 billion in 2024, a 40% increase compared to the previous year.
Cryptocurrency Regulations in Türkiye: What You Need to Know
Last year, 2024 saw renewed activity among Turkish cryptocurrency companies as of August, when the Turkish Capital Market Board (CMB) received 47 license applications from cryptocurrency companies under the new regulations.
Applications have increased rapidly following the enforcement of the ‘Act on the Amendment of the Capital Markets Act’ which came into effect on July 2nd. The law aimed to provide a regulatory framework for cryptocurrency asset service providers.
Turkey’s cryptocurrency trading law allows individuals to buy, hold and trade cryptocurrencies, but using them for payments has been banned since 2021.
Turkey does not impose taxes on cryptocurrency profits, but is considering a small 0.03% transaction tax to bolster the national budget.
Bitcoin in US Reserves: Can Price Drive to $500,000? Source: YouTube
magazine: 13 Christmas Gifts Bitcoin and Cryptocurrency Users Will Love