Turkey Introduces Comprehensive Cryptocurrency Regulations Inspired by MiCA
In December 2024, Turkey announced new cryptocurrency regulations, drawing heavily from international frameworks like Europe’s Markets in Crypto Assets (MiCA). These measures, outlined in a document published on December 25 in the Official Gazette of the Republic of Turkey, aim to enhance oversight and address financial risks associated with digital assets.
Key Regulatory Measures
Under the new regulations, crypto transactions exceeding 15,000 Turkish liras (approximately $425) will require users to provide identifying information to service providers. This requirement, set to take effect on February 25, 2025, is designed to combat money laundering and terrorism financing. Transactions below this threshold will not mandate user identification.
The rules also impose stricter oversight on unregistered wallet addresses, requiring service providers to verify sender details. Transfers deemed “risky” due to insufficient information may result in the suspension of transactions or the termination of business relationships. The legislation states: “In case sufficient information cannot be obtained, the issues of not performing the transfer or limiting the transactions made with the financial institution in question or terminating the business relationship will be considered.”
Turkey’s Growing Crypto Market
Turkey ranks as the fourth-largest cryptocurrency market globally, with an estimated trading volume of $170 billion as of September 2023. This places it ahead of major markets like Russia and Canada.
The country’s interest in regulating its burgeoning crypto sector has been evident throughout 2024. The Turkish Capital Markets Board (CMB) received 47 license applications from crypto firms following the implementation of the Law on Amendments to the Capital Markets Law in July, which established a foundational regulatory framework for crypto asset providers.
Crypto Payments Remain Banned
Despite the legalization of cryptocurrency trading, using digital assets for payments has been prohibited in Turkey since 2021. While profits from crypto trading remain untaxed, the government is considering a 0.03% transaction tax to bolster the national budget.
These measures align Turkey with global efforts to formalize cryptocurrency regulations, similar to Europe’s MiCA framework, which takes effect on December 30, 2024.
Binance Adjusts Services in Turkey
In response to Turkey’s evolving regulatory landscape, Binance has announced adjustments to its operations in the country. While Binance.com will remain accessible to Turkish users, the platform will phase out the Turkish language option over the next three months and cease all marketing activities targeting local users. These changes are part of Binance’s commitment to aligning with both local and global compliance requirements.
Conclusion
Turkey’s new regulations reflect its growing role in the global cryptocurrency market and its commitment to ensuring transparency and security. By adopting international standards like MiCA, Turkey is positioning itself as a key player in shaping the future of digital assets. While these measures may introduce challenges for users and businesses, they also promise a more secure and sustainable ecosystem for cryptocurrency adoption.
