Turkey Implements Stricter Anti-Money Laundering Regulations for Cryptocurrencies, Requiring User Information for Transactions by 2025

Turkey is set to implement stricter regulations on cryptocurrencies in an effort to combat money laundering and align with global standards. Inspired by the European Union’s framework, Turkish crypto service providers will be required to collect user information for transactions exceeding 15,000 Turkish lira. This move comes as Turkey’s cryptocurrency market gains prominence globally. Starting from February 25, 2025, all transactions above the threshold will require identity verification, and providers can classify transactions as “risky” and potentially halt them if sufficient information is not obtained. Providers may also limit transactions or terminate relationships with non-compliant users. To operate legally, firms must obtain licenses and comply with ongoing oversight. While these regulations aim to enhance consumer protection, there are concerns that they may stifle innovation and deter smaller startups. However, established international crypto firms may see this as an opportunity to enter the Turkish market. Similar to the EU’s framework, Turkey’s measures impose stricter conditions on licensing and internal controls. In contrast, the United States has a fragmented regulatory landscape with varying oversight across agencies. Turkey also faces constraints with the prohibition of crypto payments, which limits their use within the domestic economy. To address fiscal challenges, Turkish authorities are considering a transaction tax on crypto trades. Russia is also preparing to implement rigorous regulations, including a centralized surveillance platform to curb illegal financial activities and a ban on mining in certain regions.