Turkey Enforces ID Rules for Crypto Trades Above $425

Turkey has introduced a robust set of cryptocurrency regulations aimed at curbing illicit activities such as money laundering and terrorism financing. The new rules, which will take effect on February 25, 2025, require users conducting transactions exceeding 15,000 Turkish lira (approximately $425) to provide identifying information to crypto service providers.

The move, announced via the Official Gazette on December 25, aligns Turkey with global trends in crypto regulation, inspired by frameworks like Europe’s Markets in Crypto-Assets (MiCA) bill, which comes into effect on December 30, 2024.

The regulations mandate that crypto service providers collect user information for unregistered wallet addresses. Transactions where identifying information cannot be verified may be classified as “risky.” In such cases, providers have the authority to halt transfers, limit interactions, or terminate business relationships entirely.

These measures are part of Turkey’s broader strategy to regulate its booming cryptocurrency market, which recorded a staggering $170 billion in trading volume as of September 2023, making it the fourth-largest crypto market globally, according to Chainalysis .

While crypto trading remains legal, the use of digital assets for payments has been restricted since 2021. Alongside the new AML measures, Turkey is reportedly considering a 0.03% tax on crypto profits to bolster its national budget.

The stricter regulations arrive amid growing interest in cryptocurrencies worldwide. With Bitcoin recently surpassing $100,000, Turkey’s proactive stance aims to attract legitimate investors while deterring misuse.