Turkey’s Ministry of Treasury and Finance is announcing a massive overhaul of crypto regulations to prevent criminal activity. The overhaul specifically targets money laundering, illegal gambling, and fraud.
These new regulations mostly focus on exchanges, imposing new KYC and reporting rules, plus new transaction limits and time delays. The country has changed these policies several times in recent months, yet issues still persist.
Turkey’s Changing Crypto Policies
Turkey’s stance towards crypto regulation has gone through a surprising number of changes recently. Last August, 47 crypto firms flocked to the nation anticipating positive changes, but several major players quickly withdrew.
After this, the country changed crypto policies in December, and local media now reports that it’s altering them again:
“Legitimate cryptoasset activities will be maintained. For example, cryptoasset transactions… for the purpose of liquidity provision, market making or inter-market arbitrage… can be carried out without being subject to limits, under the responsibility and supervision of the relevant platforms,” claimed Treasury and Finance Minister Mehmet Şimşek.
Şimşek qualified this statement in a few further ways, but the gist is that exchanges and other service providers bear the brunt of new restrictions.
These firms will need to implement stricter KYC, document all transactions, and be subject to more government oversight. However, Turkey’s new policy definitely envisions a future for the nation’s crypto industry.
So, what do these new regulations actually change for the average user? For one thing, customers of crypto exchanges in Turkey may have to wait 48-72 hours to actually withdraw their assets after requesting a transfer.
This limit is intended to prevent fraud and money laundering, and accredited exchanges can become exempt from it.
Additionally, Turkey is specifically targeting stablecoins as a problem area in crypto. The new policy will severely limit stablecoin transactions for the individual user, maxing out at $3,000 per day and $50,000 per month.
However, crypto exchanges that receive proper registration will also be able to double these limits.
Still, it might not be easy to get this proper licensing. After all, Coinbase and other crypto firms pulled out of Turkey a few months ago due to difficulties with this registration process.
The nation has repeatedly tried to enforce tight control over exchanges, but this evidently hasn’t been successful.
These new regulations could potentially hurt the country’s growing crypto economy. Turkey is a major leader for crypto adoption, with nearly 30% of the population investing in digital assets.
It’s understandable that the government wants to get its policy right. Yet, ambiguous or cumbersome new rules may hamper economic activity, especially if they keep changing this fast.
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