With the rapid development of the global cryptocurrency market, anti-money laundering (AML) and compliance supervision have gradually become the focus of various countries. Recently, Türkiye announced a series of stricter cryptocurrency anti-money laundering regulations, a move that quickly attracted widespread attention in the industry. These new regulations will officially take effect on February 25, 2025, demonstrating Turkey's determination in the field of encryption industry supervision, and also provide an important reference for the compliance development of the global market.

Interpretation of new regulations: Strengthening information transparency and transaction security

Turkey issued an announcement on December 25, 2024, clarifying the main provisions of the new anti-money laundering regulations, focusing on Transaction threshold settings, risky transaction processing and restrictions on unregistered wallets strive to improve the transparency and security of cryptocurrency transactions.

Turkey’s new cryptocurrency regulations

Source: Official Gazette of the Republic of Turkey

1. Transaction threshold setting

According to the new regulations, when users perform cryptocurrency transactions exceeding 15,000 Turkish lira (approximately $425), they need to submit complete identity information to the service provider. For transactions below this threshold, service providers may optionally collect relevant information. This regulation aims to ensure the traceability of large transactions, thereby effectively curbing illegal financial flows.

2. Handling of risky transactions

If the cryptocurrency sender fails to provide sufficient information, its transaction will be marked as "high risk". The service provider has the right to take a variety of measures in this case, including refusing the transaction, restricting cooperation with relevant financial institutions, and even terminating the business relationship with the transaction party. This provision provides service providers with greater discretion and helps improve the security of the overall transaction system.

3. Restrictions on unregistered wallets

Wallet addresses that are not registered on the platform are also subject to strict supervision. Service providers need to collect the sender's identity information, otherwise related transactions will be restricted. This measure is aimed at combating illegal activities such as money laundering and financing of terrorism through anonymous wallets.

Through the above measures, Turkey hopes to establish a more transparent and secure trading environment in the cryptocurrency field and lay the foundation for the standardized development of the industry in the future..

Global background: Integration with the European MiCA framework

Turkey’s new regulations coincide with global encryption The currency industry comes at a time of important regulatory changes. Europe’s Crypto-Asset Market Regulation Act (MiCA) will take effect on December 30, 2024, and is regarded as the world’s first regulatory framework that comprehensively covers crypto-assets.

Turkey’s new regulations clearly draw on advanced international regulatory experience such as MiCA, marking its integration with global standards in terms of cryptocurrency compliance. This convergence with international norms not only helps to enhance the attractiveness of the Turkish market, but also provides a more credible trading environment for international investors. In addition, enhanced supervision is critical to tackle cross-border financial crimes such as money laundering and terrorist financing.

Industry Impact: Turkey’s Compliance Road and Market Prospects

As the world’s fourth largest cryptocurrency market, Turkey’s trading volume will reach US$170 billion in 2023. It surpassed Russia and Canada, demonstrating its important position in the cryptocurrency field. However, Türkiye still faces many challenges between regulation and market development. Although buying, holding and trading cryptocurrencies is legal in Turkey, using cryptocurrencies as a payment instrument has been banned since 2021. This means that although investors are free to trade, they cannot directly apply cryptocurrencies to daily consumption scenarios.

Turkey’s cryptocurrency market has shown strong growth momentum, which is inseparable from its special economic environment and the people’s strong demand for digital assets. Turkey has long faced problems of high inflation and currency devaluation, which has prompted more and more people to view cryptocurrency as a tool to hedge risks and protect wealth. However, Turkey has a more cautious attitude towards cryptocurrencies. Although legal transactions are allowed, restrictions on payment scenarios indicate that regulators are still trying to balance the relationship between innovation and risk control.

1. Promote market standardization

The new regulations will significantly improve market transparency and transaction security. Increase investor confidence in crypto assets. In a standardized market environment, participants can enjoy higher quality services, thereby further promoting the healthy development of the market.

2. Accelerate the corporate compliance process

As of December 2024, 77 cryptocurrency companies have applied for operating licenses from the Turkish Capital Market Commission. This reflects the company'sThe positive response to the new regulations also lays the foundation for wider market participation in the future.

3. Long-term development potential

Although new regulations have placed restrictions on some trading activities, Turkey has maintained an open attitude towards taxation. For example, there is no tax on crypto-asset profits and only a 0.03% transaction tax, demonstrating support for market development. This balanced regulatory approach will support the long-term development of Türkiye’s crypto market.

Beosin KYT: Helping Web3 Security and Compliance

In the context of regulatory upgrades in the global encryption industry, the importance of compliance tools has become increasingly prominent. As a leader in Web3 security and compliance, Beosin's KYT (Know Your Transaction) system provides comprehensive compliance support for cryptocurrency service providers.

Real-time monitoring of transactions

Beosin KYT system can detect high-risk transactions and suspicious addresses, helping service providers prevent illegal fund flows in real time and reduce the risk of financial crime.

Comprehensive compliance solution

This system has complied with the requirements of multi-national AML regulations and can help companies quickly adapt to new regulations in markets such as Turkey and meet local and international compliance standards .

Customized services

For high-growth markets such as Turkey, Beosin provides localized support to help companies cope with regulatory challenges and reduce compliance costs through efficient tools.

The encryption industry moves towards a new stage of transparency and security

Turkey's new regulations mark the global cryptocurrency industry's move from "barbaric growth" to "standardized development" An important step. By strengthening anti-money laundering measures and aligning with international norms, Türkiye has laid the foundation for building a more secure and transparent crypto ecosystem. In this process, compliance technologies like Beosin KYT will become a key force in promoting the healthy development of the industry. In the future, as more companies join the regulatory ranks, the cryptocurrency industry is expected to usher in broader development prospects in an environment of increasing security and transparency.

Reference:

https://cointelegraph.com/news/turkey-new- crypto-regulation-aml-2024

https://cointelegraph.com/learn/articles/cryptocurrency-laws-and-regulations-in-turkey