ANKARA CRACKING DOWN ON CRYPTO CURRENCY MONEY LAUNDERING
Stricter regulations imposed on cryptocurrencies to combat illicit funds transaction activities.
The Treasury and Finance Ministry is tightening the screws on illicit funds being laundered through cryptocurrencies, notably aiming to dry up proceeds from illegal betting and fraud with strict regulations, time limits, and identity checks.
The ministry is stepping up efforts to combat money laundering, concentrating on cryptocurrency transactions, according to the state-run Anadolu Agency.
Set to tighten the noose, new measures will require Crypto Asset Service Providers (CASPs) to ramp up surveillance and scrutiny of all transactions.
As per the upcoming rules, CASPs will need to dig deep into the origins of funds and the reasons behind crypto transfers. For every transaction, customers need to supply at least a 20-character explanation, ensuring greater transparency.
To obstruct the rapid withdrawal of illicit funds, crypto withdrawals which violate the "travel rule" – requiring sharing of sender and recipient details – will be met with a mandatory 48-hour waiting period after deposits, purchases, or swaps. Newcomers withdrawing from an account for the first time will experience a 72-hour hold-up to prevent criminals from swifty covering their tracks.
The regulations also place a cap on stablecoin transfers.
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Finance Minister Mehmet Şimşek underscored that the measures are aimed at balancing oversight with innovation.
"These regulations prevent the quick transfer of illicit funds abroad while preserving room for legal crypto activities," he said, providing examples such as liquidity provision, market-making, or arbitrage. Users engaged in such activities can conduct unlimited transfers provided they divulge the source of their funds and abide by platform supervision.
Şimşek sent a chilling message to crypto platforms, emphasizing the need for compliance.
"Non-compliant platforms face administrative penalties, including license denial or revocation, plus other legal and financial sanctions," he said.
Turkey's new anti-money laundering (AML) regulations for cryptocurrency transactions serve to curb illicit activities like money laundering, illegal gambling, and fraud while maintaining a functional crypto market. Key measures include delayed crypto withdrawals, identity verification, transfer limits, and enhanced transparency, all designed to prevent crypto from being used for illicit finance and reinforce compliance with international AML standards.
The Treasury and Finance Ministry's new regulations on Crypto Asset Service Providers (CASPs) in Turkey aim to prevent cryptocurrencies from being used for illicit finance in the context of policy-and-legislation and politics. The regulations include stringent identity checks, transaction surveillance, and transfer limits on stablecoins, which are intended to combat money laundering and illegal activities such as fraud and gambling.
Non-compliant platforms face penalties including administrative actions, license revocation, and financial sanctions, highlighting the importance of adherence to anti-money laundering (AML) regulations in the business of cryptocurrencies.
