- Turkey has introduced a new AML regulation
- It requires the identification of participants in transactions exceeding $425
- This comes a week before MiCA updates come into effect in Europe
Turkey introduced new regulations aimed at preventing money laundering. One requirement is that participants in crypto transactions exceeding 15K Turkish Liras or $425 be identified.
These are proactive measures in accordance with the new MiCA comprehensive regulations for cryptocurrency in the European Union, which will come into force on December 30, 2024.
More About Turkey’s Crypto Regulation
Turkey is actively updating its regulatory framework in line with the growing demand for cryptocurrencies around the world. Specifically, according to Chainalysis Turkey was the fourth largest crypto market in the world with a turnover of approximately ~170B as of 2023.
Although Turkey has banned cryptocurrency payments since 2021, it allows individuals to buy, hold, and trade crypto, and implemented the “Law on Amendments to the Capital Markets Law” on July 2, 2024, after which the Turkish Capital Markets Board (CMB) received 47 license applications in August.
This new crypto regulation likely considers the new MiCA rules in Europe and aims to prevent security gaps in transactions between European and Turkish crypto companies.
Starting from 25 Feb 2025 new AML regulation now requires crypto service providers to collect identity information from senders if transactions exceed 15K Turkish Liras or $425, and can cancel them if the information is not received.
In case sufficient information cannot be obtained, the issues of not performing the transfer, limiting the transactions made with the financial institution in question, or terminating the business relationship will be considered.
Conclusion
If we abstract from the political climate in Turkey, the regulation itself suggests a noticeably low limit and a high degree of control.
However, it is also worth noting that Turkey’s focus on not creating security gaps in transactions with European companies may be a good sign, which this impressive and strict measure reinforces.
