Turkey Tightens Crypto Regulations over Transaction Volumes

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  • Turkey has started to toughen their grip on the cryptocurrency sector.
  • Turkey’s financial watchdog, the Financial Crimes Investigation Board or MASAK, has introduced a new policy that stipulates that all Turkish crypto exchanges must now inform them of any crypto transactions over 10,000 Turkish liras ($1,200).
  • The new policy was announced by the Turkish Minister of Treasury and Finance Lütfi Elvan.

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Turkey Lays Down New Regulations For Crypto Exchanges

Elvan shared the new policy and other updates on the government’s crypto regulation drafts on a CNN Turk live broadcast.

According to the Finance Minister, the government plans to give MASAK the authority to audit and oversee crypto exchanges and regulate the crypto sector, as a whole.

Elvan said MASAK had prepared a guideline for crypto exchanges that includes the rules and penalties for reporting transactions. Elvan said,

“Crypto trading platforms are now obliged to share the information of their active users with MASAK. They are liable for any suspicious activities on their platforms. They are also responsible for notifying MASAK about any transactions worth over 10,000 Turkish liras in 10 days after the trading.”

This new regulation comes after Turkey’s central bank banned cryptocurrency as a form of payment. The bank had said crypto assets involved significant risks due to their volatile nature and may lead to irreversible losses to investors. It also added that they were used for illegal activities.

Turkey’s Recent Moves Surrounding Crypto Market Trade

The country, which was once referred to as a crypto-friendly country because of its subtle approach towards digital assets, is rapidly cracking down on the cryptocurrency sector.

In March, the Finance minister posted a statement on Twitter where he expressed concerns about cryptocurrencies. He also announced that the ministry was working with the central bank and two financial regulatory agencies to monitor cryptocurrency.

Turkish investors turned to crypto in a bid to protect their savings from the weak Lira. Many believe the government is looking into regulating the market due to concerns around fraudulent activity.

One prime example of this is the case involving crypto exchange Thodex, which was accused of defrauding investors. About 391,000 investors on the platform were said to have been prevented from accessing their assets which were estimated to be $2 billion in investments. The Turkish police detained 62 people in connection with the case following complaints from users.



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