48-hour delay on transactions
Upper limits on stablecoin deals
A fifth of Turks invest in crypto
Turkey’s financial regulators have strengthened cryptocurrency rules, bringing in a range of measures to reduce money laundering and sharpen oversight in one of the world’s busiest crypto markets.
Under the regulations that come into force today, there will be a 48-hour delay in all crypto transactions being completed. This will rise to 72 hours for first withdrawals from a crypto account.
The Ministry of Finance and Treasury’s Financial Crimes Investigation Board has also toughened up identification requirements for accounts and transactions, with full user ID now mandated and a minimum 20-character explanation of the nature of the transaction.
Crypto asset service providers in Turkey are required to develop internal risk management policies and anti-money laundering policies that can be subject to external audit. Platforms must report any suspicious transactions to regulators.
The regulations also impose limits on stablecoin transactions, with an upper ceiling of $3,000 per day and $50,000 in a month. The ministry says these measures are intended to curb illegal gambling and money laundering.
Platforms that do not comply face having their operational licence revoked and fines imposed.
Mehmet Şimşek, Turkey’s finance minister, described the crypto measures as part of the government’s crackdown on illegal money movements, saying on June 28: “We are taking new steps to prevent the laundering of criminal proceedings obtained from illegal betting and fraud through cryptocurrency transactions.”
The regulations are likely to affect many Turks, with local buy-in among the highest in the world. Crypto market analyst Helin Çelik says an estimated 20 percent of Turks are crypto investors and the country ranks third globally for transaction volumes.
Çelik added that the main impact was being felt by platforms rather than investors, with service providers scrambling to meet the July 1 deadline.
“Platforms will have to be able to comply with the operational processes and have to establish their system infrastructure in order to pass inspection,” Çelik told AGBI.
The regulations may cause some service providers to re-evaluate their Turkish operations. At least one has already left the market, she said.
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