In a surprising turn of events, Turkey has made significant efforts to bolster its position in the global cryptocurrency market.
Recently identified as the 12th largest market for digital currencies by adoption, as per Chainalysis, Turkey introduced new cryptocurrency rules in the last week of 2024.
The new regulations in Turkey are designed to establish a robust and contemporary crypto environment, drawing inspiration from the regulatory framework in Europe.
Insights into Turkey’s fresh cryptocurrency guidelines
A publication on December 25 in the Official Gazette of the Republic of Turkey unveiled the country’s plan to introduce stricter supervision on cryptocurrency transactions through its updated regulatory structure.
Commencing from February 2025, individuals engaging in transactions above 15,000 Turkish Liras (around $425) will need to furnish identification details to crypto service providers.
These directives are focused on improving transparency and minimizing the risks related to illegal activities like money laundering and terrorism funding.
Factors prompting Turkey’s regulatory decision
Fascinatingly, Turkey’s regulatory step coincides with the increasing global interest in regulating the world of cryptocurrencies.
This action anticipates the implementation of Europe’s groundbreaking Markets in Crypto-Assets (MiCA) regime, scheduled to be enforced from December 30.
As an encompassing crypto regulatory system, MiCA strives to establish a standard for managing innovation and safeguarding investor interests.
Implications for your digital assets
Significantly, Turkey’s latest move allows service providers to categorize transactions as “high-risk” and limit them if the requisite information is not provided.
Moreover, companies must obtain licenses from the Capital Markets Board (CMB) to function, with supervision divided between the Financial Crimes Investigation Board and TÜBİTAK, which will review the technological infrastructure.
While these measures aim at enhancing consumer protection and curbing financial crimes, experts warn that the substantial compliance costs might pose a challenge for smaller startups, potentially giving larger multinational firms a competitive advantage in the Turkish market.
Despite this, Turkey’s regulatory transformation coincided with the announcement of U.S. President Donald Trump’s plans for establishing a Strategic Bitcoin Reserve and Russia’s enforcement of a widespread prohibition on crypto mining across ten regions starting January 2025.
This contrast accentuates the various strategies adopted by nations towards digital assets.