Stronger Crypto Regulations Ahead for Turkey
Turkey is taking a leap forward in regulating cryptocurrencies by putting them on par with global standards. The updated rules, coming into effect from February 25, 2025, aim to prevent money laundering and financing of terrorism while offering better protection during digital asset transfers.
Key Requirements Under the New AML Framework
Among others, new AML-related rules bind Turkish crypto service providers in several ways. Users of the platforms will have to identify themselves when a transaction exceeds 15,000 Turkish lira ($425). Also, any wallet address that was not registered earlier with providers should also be verified.
Under the new framework, such “risky” transactions, coming from those who cannot be identified, might be barred or restricted. This is a provision to make sure funds involved in illegal activities cannot find their easy way through the system. The rules have been seen as one sure step toward strengthening the integrity of the financial ecosystem in Turkey.
Impact on the Expanding Crypto Market of Turkey
This underlines the importance of these regulations considering the prominence of Turkey in the cryptocurrency market. At the end of September 2023, it ranked fourth in the world’s biggest crypto market, with trading volume reaching $170 billion, ahead of such countries as Russia and Canada.
It came in tandem with the change in regulatory oversight across most of the world, just like Europe’s Markets in Crypto-Assets bill is going to take effect from December 30, 2024. Turkey thereby tries to balance the thin line between innovation and enforcement of regulations to attain stability in the market and also safeguard user interests.
Crypto Businesses and Tax Implications
More precisely, the past year was busy for Turkish crypto firms: 47 license applications were sent to the Turkish Capital Markets Board, or CMB, in 2024 alone. This happened in the wake of the broader regulatory framework that came into effect in July this year.
While cryptocurrency trading remains legal, using crypto for payments has been prohibited since 2021. Turkey is also exploring a modest 0.03% transaction tax to bolster the national budget, which could affect transaction costs for businesses and individuals alike.
A Step Toward Global Standards
The updated AML regulation in Turkey shows one’s will for transparency and security in the crypto space. While offering a much safer environment, Turkey is getting ready to be among serious players in the global crypto economy that is underway.
