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Read Full BioThe Turkish government has announced plans to impose new restrictions on crypto exchange transactions, aiming to prevent criminal organizations from laundering the proceeds of illegal gambling and fraudulent activities.
The country’s Finance Minister, Mehmet Simsek, confirmed a report from the state-owned news agency Anadolu on his X account.
Simsek reposted Anadolu’s article. He added: “We are taking new steps to prevent the laundering of criminal proceeds obtained from illegal betting and fraud through cryptocurrency transactions. We will impose administrative, legal, and financial sanctions on platforms [crypto exchanges] that do not comply.”
Turkey: Crypto Hold Orders for Non-Travel Rule Compliant Transactions
The Ministry of Treasury and Finance’s new rules will force permit-holding crypto exchanges to impose mandatory waiting periods of 48 hours on crypto transactions that do not adhere to Travel Rule protocols.
The Travel Rule (formally Recommendation 16) was devised by the Financial Action Task Force (FATF). It requires crypto exchanges and wallet providers to share information about the originators and beneficiaries of transactions.
Using this data, exchanges can decide whether or not to flag suspicious-looking transactions.
The FATF claims that its often-maligned rule helps prevent crypto-powered money laundering and combats the financing of terrorist groups.
The ministry will also oblige exchanges and wallet providers to extend their freeze orders to 72 hours in the case of first-time crypto withdrawals.
The government is also set to impose daily limits on the transfer of stablecoins, tokens pegged to fiat currencies (typically the US dollar). Ankara wants to introduce a daily stablecoin cap of $3,000 and a monthly limit of $50,000.
Customers will also be required to comply with new protocols, which include providing mandatory transaction descriptions of at least 20 characters. In these descriptions, exchange customers will need to provide details about the source of their funds.
Law-Abiding Turkish Crypto Users Can Trade Freely, Says Minister
Simsek has previously stated that the government is making efforts to block the criminals from making fast, cross-border transfers.
The minister claimed that the new move would not hurt legitimate crypto traders. He said it would also help preserve the integrity of the Turkish financial system.
Anadolu quoted him as explaining: “Users who use crypto to provide liquidity, make markets, or provide inter-market arbitrage will not face any new limits, provided they document the source of their funds under the supervision of the relevant platforms.”
Simsek added that “various legal and financial sanctions” would await non-compliant exchanges. These include revocations of operating licenses.
In April, the crypto exchange titan Crypto.com joined the prediction market firm Kalshi’s bid to sue the Maryland Lottery and Gaming Control Commission. The gaming regulator has attempted to eliminate sports-event contract trading in the state.
