The Finance Ministry of Turkey is planning new regulations that would restrict the transfers of stablecoins and require crypto platforms to gather source and purpose data.
According to information gathered by the state-run Anadolu Agency (AA), Turkey is getting ready to enforce more stringent laws on cryptocurrency transactions in an effort to fight financial crime and money laundering.
Crypto platforms will have to gather comprehensive data on the source and intent of each transfer under the proposed regulations. According to a report released by AA on Tuesday, users would have to supply a transaction description of at least 20 characters for every transfer.
When the Travel Rule does not apply, platforms will need to include holding periods on cryptocurrency withdrawals in addition to transaction descriptions. These include a 72-hour wait for the initial withdrawal from any account and a 48-hour delay for the majority of withdrawals.
The Ministry of Treasury and Finance is intensifying its monitoring of crypto asset service providers (CASPs) as part of a larger crackdown.
Limits on stablecoin transactions on a daily and monthly basis
The report states that in order to stop the quick flow of illegal payments, particularly from crimes like fraud and unlawful betting, the ministry would also impose daily and monthly limitations on stablecoin transfers. The daily and monthly limits for users will be $3,000 and $50,000, respectively.
Platforms will be able to implement these restrictions at twice the threshold if they completely adhere to the Travel Rule's requirements, which include gathering complete sender and recipient identity information.
The aim is to prevent illegal exploitation without suppressing lawful activity, Treasury and Finance Minister Mehmet Şimşek told AA. "Left-wing space will be kept for legal crypto asset activities," he stated.
"Platforms that do not comply with the new requirements may face different legal and financial fines, such as license denial or cancellation, in addition to administrative sanctions," Şimşek stated.
Notably, transactions pertaining to market making, liquidity provision, and arbitrage (where users can demonstrate the source of money) will not be subject to the limits as long as the relevant platform is in charge of monitoring them.
Turkey to align its crypto regulations with global norms
One of Turkey's most thorough attempts to bring its crypto laws into compliance with global norms, including frameworks like the European Union's Markets in Crypto-Assets (MiCA) framework, is represented by the recently proposed regulations.
The Capital Markets Board (CMB) of Turkey unveiled licensing and operational guidelines for CASPs in March. By giving the CMB complete control over cryptocurrency exchanges, wallet providers, and custodians, the framework harmonizes domestic regulation with international norms.
The regulations impose stringent conditions on the establishment of CASPs in Turkey, including minimum capital limits, shareholder arrangements, and executive backgrounds. Custodians require $13.7 million in capital, while cryptocurrency exchanges must have at least $4.1 million.
