Turkey Implements Limits on Stablecoin Transfers and Delays on Withdrawals to Combat Financial Crimes

The Turkish Ministry of Finance has established stringent regulations for cryptocurrency transactions aimed at combating money laundering and financial crimes. Local media reports this development.

Cryptocurrency platforms will be required to gather comprehensive information about the source and purpose of each transaction. Users must provide a description of at least 20 characters for every operation.

In instances where the Travel Rule does not apply, platforms will suspend most withdrawals for 48 hours and for 72 hours on the first withdrawal from any account.

The department will also impose limits on stablecoin transactions to prevent rapid outflows of illicit funds, capping these at $3,000 per day and $50,000 per month. Full compliance with the Travel Rule will allow platforms to double these thresholds.

Finance and Treasury Minister Mehmet Simsek stated that these measures aim to curb criminal abuses while not hindering legitimate activities.

“In addition to administrative penalties, various legal and financial repercussions may be enforced against platforms that fail to comply with the new regulations, including denial or revocation of their licenses,” said the official.

However, transfers related to liquidity provision, market making, and arbitrage, once the source of funds is verified, will be exempt from these restrictions as long as they are fully controlled by the platforms.

These new regulations will enhance government oversight of cryptocurrency service providers in Turkey and align local regulations with international standards.

Since 2023, the Ministry of Finance has announced the implementation of FATF guidelines in the regulation of digital currencies to help the country exit the «grey list» it has been on since October 2021.

It is important to note that starting February 25, 2025, Turkish users who conduct cryptocurrency transactions exceeding 15,000 TRY (approximately $425) will be required to provide identification data to trading platforms.