Turkey cranks up monitoring on illegal crypto betting and fraud

Turkey is tightening controls on cryptocurrency to stop criminals from laundering money from illegal betting and fraud.

Finance Minister Mehmet Şimşek shared an article on X by state-owned Anadolu news agency, saying Turkey plans to set limits on transfers and introduce waiting periods for crypto withdrawals.

According to the report, withdrawals will face a 48 to 72-hour delay if the so-called travel rule is not applied.

“We are taking new steps to prevent the laundering of criminal proceeds obtained from illegal betting and fraud through cryptocurrency transactions,” Şimşek said.

He added, “In addition to administrative sanctions, various legal and financial penalties, including denial or cancellation of license, may be imposed on platforms that do not comply with the new regulations.”

Anadolu said stablecoin transfer will be capped at $3,000 a day and $50,000 a month to curb fast outflows of illicit funds, although platforms meeting full travel-rule checks can offer twice those limits.

The travel rule requires providers to verify and share details about both the sender and the recipient of a virtual asset transfer.

The finance ministry also aims to force crypto platforms to record where funds come from and why they move, Anadolu news agency said.

Crypto platforms in Turkey to impose withdrawal delays

Under the plan, users must give a transaction note of at least 20 characters for every transfer.

Platforms also have to enforce a 48-hour hold for most withdrawals and a 72-hour wait on a user’s first withdrawal when the travel rule does not apply.

These measures form part of a wider crackdown by the Treasury and Finance Ministry to boost its oversight of crypto asset service providers.

Şimşek told the Anadolu news agency that the goal is to curb criminal misuse without stopping lawful crypto activity. “Left-wing space for legitimate crypto asset activities will be maintained,” he said.

The ministry says the changes will take effect soon.

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