Ankara, Turkey – The Turkish government is preparing to issue a new set of stringent regulations aimed at enhancing anti-money laundering (AML) efforts and tightening oversight of cryptocurrency trading activities domestically. This move comes amid significant challenges facing the Turkish economy, particularly the considerable depreciation of the lira.

Key New Regulations:

  • Cryptocurrency transaction transparency: According to a statement from the Turkish Ministry of Finance, all cryptocurrency transactions will be required to include a "note" with a minimum length of 20 characters. This regulation aims to enhance traceability and identify the purpose of each transaction, helping authorities easily detect suspicious activities.

  • Sanctions for non-compliant exchanges: For cryptocurrency exchanges that do not comply with these new regulations, there will be strict penalties. Users on those exchanges will have to endure a waiting period of 72 hours (i.e., 3 days) before they can make any withdrawal requests. This is intended to pressure exchanges to quickly adjust and comply.

  • Stablecoin transaction limits: The trading of stablecoins (price-stable cryptocurrencies) will also be subject to strict limits. Each stablecoin transaction will be capped at a maximum of 3,000 USD per day and a total of no more than 50,000 USD per month. This regulation may aim to restrict capital flows in/out of the crypto market through stablecoins, a channel often used to avoid volatility or convert assets.


Goals and Economic Context:

The Turkish Ministry of Finance stated that the goal of these regulations is to create a balance between encouraging "legal activities" in the cryptocurrency space and effectively preventing "money laundering." However, investors and exchanges are still waiting for more detailed guidance from the government to fully understand and properly implement the new regulations.

The decision to tighten crypto regulation comes in the context of the Turkish lira losing more than 20% in value over the past year. Economic instability and high inflation have led many Turkish citizens to flock to cryptocurrencies as a tool for hedging risk and protecting the value of their assets against the depreciation of the local currency. Tighter controls may aim to stabilize capital flows and manage national financial risk. #Turkey