Turkey’s Ministry of Treasury and Finance is moving swiftly to curb money laundering through digital assets. It will require Crypto Asset Service Providers to collect detailed information on the source and purpose of all crypto transfers.
The new steps, announced by a Treasury official, aim to stop illicit funds from flowing through the system. They affect transactions across Turkey as part of ongoing efforts that accelerated in March when fresh legislation was approved.
Strengthening Transaction Oversight
Under the upcoming regulation, every crypto platform must obtain clear details about where the funds come from and why they are being moved. Customers will have to describe at least 20 characters for every transfer they make.
This change covers all crypto asset movements, from simple wallet-to-wallet transactions to complex swaps on trading platforms. By demanding richer data, regulators hope to trace suspicious activity more quickly.
Withdrawal Time Restrictions
To block fast exits of dirty money, the ministry will impose waiting periods on withdrawals that fall outside the travel rule rules. Any withdrawal must wait at least 48 hours after the crypto is bought, exchanged or deposited.
For a user’s first withdrawal from an account, that holding period extends to 72 hours. Officials believe these delays will give them time to spot and stop laundering linked to illegal betting or fraud.
Stablecoin Transfer Limits
Stablecoins, which tie their value to other assets, have drawn extra scrutiny under the new plan. Transfers of stable cryptocurrencies will face a daily cap of $3,000 and a monthly cap of $50,000.
Platforms that fully meet travel rule standards, collecting sender and recipient names, wallet addresses, residence, place of birth and date of birth, can apply twice those limits. The ministry says this will let compliant firms serve bigger clients while keeping bad actors in check.
Balancing Security and Innovation
Finance Minister Mehmet Şimşek stressed that the rules will protect honest crypto users without stifling innovation. He noted that traders providing liquidity, making markets or pursuing arbitrage across exchanges can carry out transfers free of these caps.
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They must document the source of their funds and work under platform supervision. This carve-out aims to ensure that firms supporting real market needs can continue their operations smoothly.
Warning to Service Providers
Şimşek issued a firm reminder that platforms must meet their duties on user safety and system integrity. He said those who ignore the rules risk heavy penalties.
Beyond administrative fines, services could lose their license or face cancellation. The minister made clear that Turkey will not tolerate platforms that fail to follow the new controls.
Background on March Decision
In March, Turkey announced a major step forward in crypto regulation. Lawmakers approved legislation to tighten rules for Crypto Asset Service Providers.
The fresh framework laid out clearer licensing requirements and set guardrails for businesses handling digital currencies. Those changes laid the groundwork for the latest anti-money-laundering measures.
Enforcement and Outlook
The ministry will begin enforcing these rules soon after the regulation is finalised. Platforms must update their systems to collect extra data and set up delays on withdrawals.
Regulators plan to monitor compliance closely and publish guidance to help firms adjust. Industry observers expect these measures to deter criminals while giving honest traders clear rules to follow.