In the last week of 2024, Turkey introduced new Bit regulations, inspired by positive regulatory developments in major legal fields around the world, including Europe.
Under the new regulations, users conducting transactions over 15,000 Turkish Lira (425 USD) will have to share their identifying information with domestic Cryptoasset service providers, according to a document published on December 25 by the Official Gazette of the Republic of Turkey.
The new Anti-Money Laundering (AML) regulations aim to prevent illegal money laundering and terrorist financing through Bit transactions.
New Bit regulations. Source: Official Gazette of the Republic of Turkey
However, Cryptoasset service providers are not required to collect information for digital asset transfers below the 425 USD threshold.
Turkey's new regulatory draft was issued during a period of increasing attention to Bit regulations, a week before the world's first comprehensive Bit legal framework, the European Union's Cryptoasset Markets (MiCA) Act, came into effect on December 30.
Will Cryptoasset service providers in Turkey stop "risky" Bit transactions?
Turkey's new regulations will come into effect on February 25, 2025.
After implementation, Cryptoasset service providers will also need to collect identifying information from customers using wallet addresses that were not previously registered with them.
If the provider cannot collect the necessary information from the sender, the Bit transaction may be considered "risky", allowing the service provider to consider suspending the transaction, according to the new draft, which states:
"In case sufficient information cannot be collected, issues such as not executing the transfer or limiting the transactions to be carried out with the relevant financial institution or terminating the business relationship will be considered."
As of September 2023, Turkey ranked 4th in the world in the Bit market, with an estimated Trading Volume of 170 billion USD, surpassing major markets like Russia and Canada, according to Chainalysis.
Turkey's Bit Regulations: What You Need to Know
2024 brought new activity among Bit companies in Turkey, as the Turkish Capital Markets Board (CMB) received a total of 47 license applications from Bit companies under the new regulations, extending through August 2024.
The registration wave came after the Amended Capital Markets Law came into effect on July 2. This law aims to provide a legal framework for Cryptoasset service providers in Turkey.
Turkey's Bit trading law allows individuals to purchase, hold and trade Bits, but their use for payments has been banned since 2021.
While Turkey has not taxed Bit profits yet, the country is considering a small 0.03% transaction tax to support the national budget.
