Turkey Proposes Stricter Crypto Transaction Regulations

According to reports from state-run Anadolu Agency (AA), Turkey is preparing to introduce stricter regulations on cryptocurrency transactions aimed at combating money laundering and financial crime.

Transaction Details and Holding Periods Required

Under the proposed measures, crypto platforms will be required to collect detailed information on the origin and purpose of every transfer. AA reports that users will also be required to provide a transaction description of at least 20 characters for each transfer.

Furthermore, platforms will be required to apply holding periods on crypto withdrawals in the absence of the Travel Rule. These periods include a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account.

Daily and Monthly Stablecoin Transfer Limits

The regulations also include daily and monthly limits on stablecoin transfers. To prevent the rapid outflow of illicit funds, particularly from illegal betting and fraud, users will be limited to transfers of $3,000 per day and $50,000 per month.

Platforms complying fully with Travel Rule obligations, including the collection of complete sender and recipient identity details, will have the option to apply these transfer limits at double the threshold.

Treasury and Finance Minister Mehmet Şimşek told AA that the aim is “to curb criminal misuse without stifling legitimate activity,” adding “the left-wing space for legitimate crypto asset activities will be maintained.” He warned that non-compliant platforms could face administrative sanctions, including denial of license.

Specifically, Şimşek stated: “In addition to administrative sanctions, various legal and financial sanctions, including denial of license or cancellation, may be imposed on platforms that do not comply with the new regulations.”

However, transfers related to liquidity provision, market making, and arbitrage will be exempt from the limits if users can prove the source of funds and are monitored by the relevant platform.

Aligning with Global Standards

The recent proposed rules mark a significant step for Turkey in aligning its crypto regulations with international standards, including the European Union’s Markets in Crypto-Assets (MiCA) framework.

In March, Turkey’s Capital Markets Board (CMB) introduced licensing and operational rules for crypto asset service providers (CASPs). The framework grants the CMB extensive authority over crypto exchanges, wallet providers, and custodians.

These rules set strict requirements for establishing CASPs in Turkey, including standards for executive backgrounds, shareholder structures, and minimum capital thresholds – with crypto exchanges needing at least $4.1 million in capital and custodians requiring $13.7 million.