Turkey obliges crypto exchanges to collect customer data on transfers over $425

The amendments to the law are aimed at combating money laundering and terrorist financing

25.12.2024 - 15:50

3 min

What’s new? Turkish authorities have introduced new crypto regulations that require users making transactions of more than 15 000 Turkish lira ($425) to provide identification data to service providers. The measures are aimed at preventing money laundering and terrorist financing using digital assets.

Material by CoinDesk

What else is known? Crypto service providers are not required to collect information for the transfer of digital assets worth less than $425. Notably, the new regulation was passed in Turkey a week before the implementation of the world’s first comprehensive regulatory framework for cryptocurrencies: the Markets in Crypto-Assets (MiCA) regulation, which is set to take effect across the European Union on December 30.

Czech authorities have adopted a law on crypto regulation and appointed the central bank as the main supervisory body

A clear regulatory framework is designed to provide a comfortable environment for crypto firms and attract long-term investors

In Turkey, the new rules will come into effect on February 25, 2025. Crypto service providers will also be required to collect identifying information from customers using wallet addresses that were not previously registered with them.

If the provider is unable to collect the necessary information from the sender, the crypto transfer may be classified as risky, allowing the service provider to consider terminating it.

According to Chainalysis, as of September 2023, Turkey was the fourth-largest crypto market in the world with a trading volume of $170 billion, more than Russia and Canada.

By the end of August, Turkey’s Capital Markets Board (CMB) had received 47 applications from crypto companies for licenses. The wave of applications followed the July 2 entry into force of amendments to the Capital Markets Law, which aim to provide a regulatory framework for crypto service providers.

Turkey’s cryptocurrency trading laws allow individuals to buy, store and trade cryptocurrency, but using it for payments has been banned since 2021.

While Turkey does not tax cryptocurrency profits, it is considering a small transaction tax of 0,03% to supplement the budget.

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