As a seasoned analyst with over two decades of experience in global finance and technology markets, I’ve witnessed the evolution of digital assets like cryptocurrencies from a distant observer to a close participant. The regulatory landscape for these innovative financial instruments has been both intriguing and challenging, as governments grapple with balancing innovation and risk management.
2024 saw Turkey enact fresh cryptocurrency regulatory laws towards the year’s end, motivated by favorable regulatory trends in prominent international jurisdictions, like Europe.
Starting January 1st, individuals conducting cryptocurrency transactions valued at more than 15,000 Turkish liras ($425) will need to provide identifying details to Turkish crypto service providers, as stated in a recent government announcement published on December 25th.
The latest rules against money laundering (AML) are designed to prohibit the concealment of illegal funds or financing of terrorism activities using cryptocurrency exchanges.
In other words, there’s no obligation for cryptocurrency service providers to gather details when transactions involving digital assets are less than $425.
Turkey’s fresh regulatory legislation arrives at a time when there’s heightened attention towards cryptocurrency regulations. This comes just a week before the global unveiling of the first extensive crypto regulatory system, the Markets in Crypto Assets (MiCA) bill from Europe, which is scheduled to start on Dec. 30.
Will Turkish crypto service providers halt “risky” crypto transactions?
Turkey’s new regulation is set to go into effect on Feb. 25, 2025.
Following the new implementation, crypto service providers will have to gather identification details from clients who haven’t been registered with their wallet addresses before.
If the sender doesn’t supply all required details for the cryptocurrency transfer, the transaction might be labeled “potentially risky.” This allows the service provider to think about pausing the operation, as stated in the new legislation.
“In case sufficient information cannot be obtained, the issues of not performing the transfer or limiting the transactions made with the financial institution in question or terminating the business relationship will be considered.”
By September 2023, it’s been reported by Chainalysis that Turkey ranked fourth globally in terms of cryptocurrency market size, with a projected trading volume of approximately $170 billion. This figure surpasses significant markets such as Russia and Canada.
Turkey’s crypto regulations: what you need to know
2024 saw a surge of activity among Turkish crypto businesses, with the Turkish Capital Markets Board (CMB) receiving a grand total of 47 applications for cryptocurrency licenses, as per the latest regulations, by August 2024.
After the enactment of the “Capital Markets Law Amendment Act,” effective as of July 2, there’s been an influx of applications. This legislation establishes a regulatory structure for digital currency service providers within Turkey.
In Turkey, regulations permit people to acquire, store, and swap cryptocurrencies, yet making transactions with them as a form of payment is illegal since the year 2021.
Turkey currently does not impose taxes on cryptocurrency earnings, but they are contemplating a small 0.03% tax on transactions as a means to strengthen their national budget.
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2024-12-25 13:21