Turkey is on the verge of implementing stricter regulations aimed at cryptocurrency transactions as part of its efforts to combat money laundering and financial crime. According to a report from the state-run Anadolu Agency, new rules will require cryptocurrency platforms to collect detailed information regarding the source and purpose of every transfer. Users must provide transaction descriptions that are at least 20 characters long.
Additionally, platforms will be mandated to enforce holding periods for withdrawals when the Travel Rule doesn't apply, leading to a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account. These regulations emerge as part of a broader initiative by the Ministry of Treasury and Finance, which seeks to increase its oversight of crypto asset service providers (CASPs).
Further details indicate that the ministry plans to introduce daily and monthly limits on stablecoin transfers to curb potential illicit activities. Users will face caps of $3,000 per day and $50,000 per month, though compliance with Travel Rule requirements may lead to doubled limits. Treasury and Finance Minister Mehmet Şimşek emphasized the government's intention to curb criminal misuse while allowing for legitimate crypto activities.
Platforms that fail to comply with these new regulations could face various sanctions, including license denial or cancellation. Notably, transfers for liquidity provision, market making, and arbitrage will be exempt from these limits, provided the source of funds can be verified and monitored by the platform.
The proposed regulations signify Turkey's effort to align its crypto framework with international standards, such as the European Union’s Markets in Crypto-Assets (MiCA) framework. Recently, the Turkey Capital Markets Board (CMB) began implementing licensing rules for CASPs, which hold significant implications for the operation and oversight of exchanges, wallet providers, and custodians within the country. For instance, cryptocurrency exchanges must maintain a minimum capital of $4.1 million, while custodians need to hold $13.7 million.
Additionally, platforms will be mandated to enforce holding periods for withdrawals when the Travel Rule doesn't apply, leading to a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account. These regulations emerge as part of a broader initiative by the Ministry of Treasury and Finance, which seeks to increase its oversight of crypto asset service providers (CASPs).
Further details indicate that the ministry plans to introduce daily and monthly limits on stablecoin transfers to curb potential illicit activities. Users will face caps of $3,000 per day and $50,000 per month, though compliance with Travel Rule requirements may lead to doubled limits. Treasury and Finance Minister Mehmet Şimşek emphasized the government's intention to curb criminal misuse while allowing for legitimate crypto activities.
Platforms that fail to comply with these new regulations could face various sanctions, including license denial or cancellation. Notably, transfers for liquidity provision, market making, and arbitrage will be exempt from these limits, provided the source of funds can be verified and monitored by the platform.
The proposed regulations signify Turkey's effort to align its crypto framework with international standards, such as the European Union’s Markets in Crypto-Assets (MiCA) framework. Recently, the Turkey Capital Markets Board (CMB) began implementing licensing rules for CASPs, which hold significant implications for the operation and oversight of exchanges, wallet providers, and custodians within the country. For instance, cryptocurrency exchanges must maintain a minimum capital of $4.1 million, while custodians need to hold $13.7 million.
