Turkiye has recently announced groundbreaking regulations for cryptocurrency exchanges, as published in the Official Gazette. These regulations aim to enhance transparency and security within the financial ecosystem by mandating compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations. One of the key requirements under the new regulations is that transfers exceeding 15,000 TL must include detailed sender information, highlighting the government’s commitment to strict compliance measures.
The new regulatory framework for cryptocurrency exchanges in Turkiye marks a significant step towards combating money laundering and terrorism financing. Exchanges are now classified as “liable entities” under the Financial Crimes Investigation Board (MASAK) regulations, necessitating the implementation of compliance programs within a strict timeframe. This includes appointing a compliance officer and establishing AML programs within 30 days of the regulation’s enactment to align with international best practices.
Transaction monitoring and enhanced customer due diligence are crucial aspects of the new regulations. For transactions above the specified threshold, exchanges must verify the sender’s information, such as full name, trade registry record, and wallet address. While recipient details are also recorded, verification is not mandatory to strike a balance between operational feasibility and regulatory compliance. Inter-exchange transfers face additional scrutiny, with transactions being reversed if the receiving exchange cannot verify the sender’s information.
Financial institutions engaging with crypto exchanges in Turkiye now face stricter relationships, requiring executive-level approval before initiating business relationships. This additional oversight is designed to mitigate risks associated with crypto transactions, with institutions mandated to continuously monitor transactions, apply transaction limits, and develop tailored risk management policies.
To prevent the misuse of cryptocurrencies for illicit activities, exchanges must adhere to asset freezing decisions issued by relevant authorities, conduct detailed risk assessments, and ensure all existing customers complete the compliance process within four months. Remote identity verification guidelines are also tightly regulated, with exchanges only permitted to use this method as a supplementary tool, ensuring deposits and withdrawals are routed through verified bank accounts under the customer’s name.
In conclusion, Turkiye’s newly enacted regulations demonstrate a commitment to fostering a secure and transparent cryptocurrency ecosystem. By imposing stringent measures, the government aims to protect financial integrity while promoting responsible growth within the crypto industry. Compliance with these regulations not only enhances the credibility of crypto exchanges but also safeguards users against potential risks. The industry is expected to adapt to these changes, creating a more regulated and secure market environment.
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