Turkey is set to tighten its anti-money laundering (AML) regulations for cryptocurrencies by February 2025, aligning with global standards. The move, announced in the final week of 2024, is inspired by regulatory initiatives in major jurisdictions, particularly the European Union’s Markets in Crypto-Assets (MiCA) framework. Under the new rule, Turkish crypto service providers will be required to collect identifying information from users who conduct transactions worth more than 15,000 Turkish lira (approximately $425). The aim is to combat money laundering and terrorist financing through digital assets. These regulations come at a time of increased scrutiny of the crypto sector, driven by Turkey’s growing prominence in global cryptocurrency markets. Turkish regulators see this as a necessary step to prevent abuse within the sector.
As of February 25, 2025, all crypto transactions exceeding the 15,000-lira threshold will require Turkish crypto service providers to verify user identities. In addition, customers using wallet addresses not previously registered with the provider will need to undergo identity checks. If providers cannot obtain sufficient information from the sender, they are authorized to classify the transaction as “risky” and potentially halt it. Non-compliant users may have their transactions limited or their business relationships terminated. This regulatory shift places significant responsibility on crypto exchanges and service providers, who must implement advanced customer verification systems. To operate legally, firms must obtain licenses from the Capital Markets Board (CMB), which has already received 47 applications under the new crypto regulatory framework. Compliance extends beyond user verification, with ongoing operations overseen by the Financial Crimes Investigation Board and the technological infrastructure audited by the Scientific and Technological Research Council of Turkey (TÜBİTAK).
While these regulations could enhance consumer protection and strengthen Turkey’s financial system against illicit activities, industry experts warn of potential drawbacks. The strict requirements may hinder innovation and discourage smaller startups from meeting compliance costs. On the other hand, established international crypto firms may view the regulations as an opportunity to enter the Turkish market.
Turkey’s approach to crypto regulation mirrors the European Union’s MiCA framework, but imposes stricter conditions on licensing and internal controls. This is in contrast to the fragmented regulatory landscape in the United States, where crypto oversight varies across agencies. However, the prohibition of crypto payments in Turkey since 2021 remains a significant constraint. While trading, holding, and investing in crypto are permitted, the inability to use digital assets for direct payments limits their utility within the domestic economy. To address fiscal challenges, Turkish authorities are considering a 0.03% transaction tax on crypto trades, which could boost national revenues without significantly hindering market growth.
Turkey is not the only country preparing to implement rigorous regulations for the crypto market by 2025. The Central Bank of Russia is developing a centralized surveillance platform to combat illegal financial activities. The platform will identify and block individuals who engage in illicit transactions, including crypto over-the-counter trades. This initiative coincides with Russia’s ban on mining in 10 regions starting in January 2025.
