Turkey To Give Authorities Power To Freeze Crypto Accounts In New Aml Rules

What Happened

In March, the Capital Markets Board (CMB) introduced licensing and operational requirements for crypto asset service providers (CASPs), granting it full oversight of exchanges, wallet providers, and custodians.

Rival exchange Binance also announced it would terminate its retail referral program in Turkey to comply with local regulations.

Additionally, the Turkish regulatory framework, which forms part of broader amendments to the Capital Markets Law No. 6362, introduced minimum capital requirements for crypto companies.

Market Context

Users would be capped at $3,000 per day and $50,000 per month in stablecoin transfers.

For example, crypto exchange Coinbase has already withdrawn its pre-application to enter Turkey’s crypto market.

Why It Matters

The measures are expected to reach parliament through a bill, based on information from sources familiar with the plans, who requested anonymity since the proposal has not been made public.

Platforms that comply with the Travel Rule and gather full sender and recipient information may offer twice the daily and monthly transfer limits.

Treasury and Finance Minister Mehmet Şimşek noted that platforms failing to comply with the new requirements could face various penalties, including fines, denial of licenses, or cancellation.

While these regulations may strengthen consumer protection and protect Turkey’s financial system from illegal activities, industry experts caution about possible downsides like big players’ exit.

Details

Turkey is set to grant its financial crime authority, Masak, the power to freeze and limit access to crypto accounts as part of efforts to combat money laundering and financial crime.

According to Bloomberg Law, the proposed measures follow anti-money laundering standards established by the Financial Action Task Force (FATF).

This continues the Turkish government’s ongoing AML crackdown and other financial crimes.

A June report from the state-run Anadolu Agency revealed that cryptocurrency platforms will need to gather more information about the transactions they process.

Under the new requirements, Turkish crypto service providers must collect identifying information from users conducting transactions exceeding 15,000 Turkish lira (roughly $360).

Users will also be required to include a transaction note of at least 20 characters for each cryptocurrency transfer.

Turkey Authorities to Freeze Crypto Accounts: Minister Warns of Exchange License Cancellation

The proposed requirements extend beyond simple reporting.

When the complete sender and recipient information isn’t shared, platforms must hold withdrawals.

Most withdrawals would be delayed for 48 hours, while first-time withdrawals from new accounts would be subject to a 72-hour hold.

Turkish authorities are also setting limits on stablecoin transactions to restrict the flow of illegal funds, particularly those connected to fraud and illegal betting.

The new measures follow earlier actions Turkey has taken to regulate the cryptocurrency sector.

This regulatory change places considerable responsibility on crypto exchanges and service providers, requiring them to establish comprehensive customer verification systems.

Turkey Ranks 14th in Global Crypto Adoption Despite Strict AML Rules

Cryptocurrency exchanges must maintain a minimum of $4.1 million in reserves, while custodians must maintain a minimum of $13.7 million.