Turkey Enforces $425 Threshold For Crypto User Identification Under AML Rules

Turkey unveiled updated cryptocurrency regulations in the final week of 2024, aligning with global regulatory trends, particularly Europe’s forthcoming Markets in Crypto-Assets (MiCA) framework.

The new rules were published in the Official Gazette of the Republic of Turkey on Dec. 25 and require users to provide identifying information for transactions exceeding 15,000 Turkish lira ($425). This Anti-Money Laundering (AML) measure is said to prevent illicit fund transfers and terrorism financing via cryptocurrency.

Crypto service providers in Turkey must comply with stricter customer identification measures, but only for transactions surpassing the $425 threshold. For smaller transactions, there is no requirement to collect such information. Effective Feb. 25, 2025, the regulation mandates that providers also verify the identity of users transferring funds from previously unregistered wallet addresses.

If a provider cannot obtain sufficient customer information, the transaction could be deemed “risky,” allowing the service provider to halt the transfer or consider other measures, such as limiting the business relationship.

The regulations come amid increasing global interest in crypto oversight. Turkey’s approach follows Europe’s MiCA bill, which takes effect on Dec. 30, setting standards for digital assets across EU member states.

Turkey’s new measures arrive as the nation solidifies its position as a major player in the cryptocurrency market. In September 2023, Turkey ranked as the fourth-largest global crypto market, with trading volumes surpassing $170 billion, according to Chainalysis.

Over the past year, Turkish crypto companies have ramped up efforts to comply with evolving laws. The Turkish Capital Markets Board (CMB) received 47 license applications from crypto firms in 2024, driven by new regulatory requirements under the “Law on Amendments to the Capital Markets Law,” which took effect in July.

While Turkey permits the trading and holding of cryptocurrencies, using them for payments has been prohibited since 2021. The government is also considering implementing a 0.03% transaction tax to enhance the national budget, though profits from crypto trading remain untaxed.

In August, Andreas Szakacs, a co-founder of the cryptocurrency platform OmegaPro, was arrested in Turkey last month for his alleged involvement in a $4 billion Ponzi scheme.

Szakacs, a Swedish national who became a Turkish citizen and changed his name to Emre Avci, denied the accusations, claiming he worked in finance and marketing.

The Turkish gendarmerie reportedly seized computers and 32 cold wallets during the arrest, although Szakacs did not provide passwords for the devices. Authorities were nonetheless able to trace cryptocurrency movements totaling $160 million, as reported by BirGün.

OmegaPro, which reportedly collapsed in late 2022 around the same time as the FTX crypto empire, was flagged by regulators in several countries, including France, Belgium, Spain, and Argentina, for potential fraud. However, the platform did not target U.S. customers.