Turkey to Implement New AML Rules for Crypto Transactions in 2025

Turkey is poised to introduce new anti-money laundering (AML) regulations targeting cryptocurrency transactions, with the official implementation scheduled for February 25, 2025. The new measures aim to reduce the risk of digital currencies being used for illicit activities such as money laundering and terrorism financing.

According to a document published in the Official Gazette on December 25, 2024, users engaging in crypto transactions exceeding 15,000 Turkish liras ($425) will be required to provide identifying information to crypto service providers. Transactions below this threshold will not require such disclosures. Additionally, the regulations will compel crypto service providers to collect information for previously unregistered wallet addresses.

In cases where service providers are unable to gather sufficient user data from a transaction sender, they will be allowed to classify the transaction as "risky" and may halt the transaction. The bill also empowers providers to limit or terminate business relationships when adequate information is not provided.

The new regulations come at a time of growing interest in Turkey's crypto sector. Since the implementation of the "Law on Amendments to the Capital Markets Law" on July 2, 2024, the Turkish Capital Markets Board (CMB) has reported 47 applications from crypto firms seeking licenses.

Turkey is currently ranked as the fourth-largest global crypto market, with a trading volume of about $170 billion as of September 2023, surpassing countries like Russia and Canada. While crypto trading remains legal in the country, the use of digital assets for payments has been restricted since 2021.

Additionally, the Turkish government is considering introducing a minimal transaction tax of 0.03% on crypto profits to help support the national budget, although no such tax is yet in place. These regulatory moves are in line with global trends, particularly Europe's forthcoming Markets in Crypto-Assets (MiCA) regulations, set to take effect on December 30, 2024.