Turkey Tightens Grip On Crypto To Foil Money Launderers

Turkey’s Ministry of Treasury and Finance rolled out new rules this week to stop money laundering through crypto trades. Users now have to put in a transfer note of at least 20 characters explaining why they’re moving funds.

At the same time, platforms must collect clear proof of where the money came from. These steps come as crypto use in Turkey has surged, driven by high inflation and a shaky currency.

New Transfer Rules Take Effect

According to the Treasury and Finance Ministry, every crypto transfer needs a note that’s at least 20 characters long. Users must say what the transfer is for. Crypto Asset Service Providers, or CASPs, will ask for documents and details to show where funds originated. The aim is to make it harder for bad actors to hide illicit gains in thousands of transactions each day.

Withdrawal Delays To Curb Crime?

Based on reports from officials, first-time withdrawals will face a 72-hour waiting period. After that, any withdrawal that doesn’t meet the FATF “travel rule” will be delayed by at least 48 hours. The goal is simple. Give investigators a window to check if funds come from illegal betting or online fraud before they disappear.

Authorities will cap stablecoin transfers at $3,000 per day and $50,000 per month. Platforms that fully follow travel-rule checks can double their users’ limits to $6,000 daily and $100,000 monthly. This tiered system pushes exchanges toward higher compliance without shutting out small traders who move modest sums.

Users active in market making, liquidity provision, or cross-market arbitrage can skip some of the tighter checks if they show proof of clean funds. They must work through licensed platforms and provide clear documents. This exemption acknowledges that professional traders add volume and keep prices stable.

Treasury and Finance Minister Mehmet Şimşek warned that any CASP ignoring the new rules could face heavy fines, license denial, or outright cancellation. Platforms will need stronger KYC teams and new software systems to tag transfers with notes and verify sources. Smaller outfits could struggle with the added cost.

Crypto adoption in Turkey ranks among the highest in the world. Officials don’t want to slow growth. They argue these steps guard honest users while making it much harder for criminals to exploit the market.

As the rules kick in, domestic exchanges will race to update their systems. Traders may grumble about extra paperwork and waiting times. Still, many believe the extra checks will give institutions and big-time investors more confidence to join in.

Featured image from Chainalysis, chart from TradingView