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Turkiye Introduces Stringent Crypto Regulations to Combat Money Laundering
- Turkiye announces new regulations for cryptocurrency exchanges, published in the Official Gazette.
- Exchanges are required to comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations.
- Transfers over 15,000 TL must include detailed sender information, highlighting the strict compliance measures.
Turkiye has implemented comprehensive cryptocurrency regulations, mandating compliance with AML and CTF standards to ensure transparency and security in the financial ecosystem.
New Regulatory Framework for Cryptocurrency Exchanges
In a landmark move, Turkiye has introduced robust regulations for cryptocurrency exchanges aimed at curbing money laundering and financing of terrorism. As per the new rules published in the Official Gazette, exchanges are now classified as “liable entities” under the Financial Crimes Investigation Board (MASAK) regulations. This classification imposes stringent obligations, including mandatory customer transaction monitoring and the implementation of compliance programs within one month.
Compliance Obligations and Deadlines
Crypto exchanges must appoint a compliance officer and establish AML programs within 30 days of the regulation’s enactment. These measures aim to align the exchanges with international best practices, ensuring that illicit financial activities are minimized. Furthermore, customer identity verification will involve confirming names, national ID numbers, and other personal details through the Ministry of Interior’s Identity Sharing System (KPS).
Transaction Monitoring and Enhanced Customer Due Diligence
For transactions exceeding 15,000 TL, exchanges are required to verify the sender’s information, including full name, trade registry record, and wallet address. While the recipient’s details are also recorded, verification is not mandatory. This threshold aims to balance operational feasibility with regulatory compliance. Inter-exchange transfers face additional scrutiny; if the receiving exchange cannot verify the sender’s information, the transaction will be reversed.
Stricter Relationships Between Financial Institutions and Crypto Exchanges
Banks and financial institutions engaging with crypto exchanges must now seek executive-level approval before initiating business relationships. This additional layer of oversight is expected to mitigate risks associated with crypto transactions. Institutions are also required to monitor transactions continuously, apply transaction limits, and develop risk management policies tailored to their operational frameworks.
Asset Freezing and Risk Management
To prevent the misuse of cryptocurrencies for illicit activities, exchanges are mandated to follow asset freezing decisions issued by relevant authorities. These include monitoring customer transactions and conducting detailed risk assessments. Additionally, all existing customers must complete the compliance process within four months, failing which their accounts will be suspended from initiating new relationships or transactions.
Remote Identity Verification Guidelines
Remote identity verification, while permissible under specific conditions, is tightly regulated. Exchanges can use this method only as a supplementary tool, and initial deposits or withdrawals must be routed through bank accounts verified under the customer’s name. This ensures a higher degree of security and prevents fraudulent activities during the onboarding process.
Conclusion
The newly enacted regulations signify Turkiye’s commitment to creating a secure and transparent cryptocurrency ecosystem. By imposing these stringent measures, the government aims to protect financial integrity while encouraging responsible growth within the crypto industry. Compliance with these regulations not only enhances the credibility of crypto exchanges but also safeguards users against potential risks. Moving forward, the industry is expected to adapt to these changes, fostering a more regulated and secure market environment.