New Regulations for Cryptocurrency Service Providers in Turkey from the Treasury
Three regulations covering cryptocurrency asset service providers have been published in the Official Gazette by the Ministry of Treasury and Finance in Turkey. These regulations introduce new obligations and regulations for cryptocurrency asset service providers.
Regulatory Change on the Electronic Notification System of the Financial Crimes Investigation Board This regulatory change amends Article 7, Paragraph 1 of the regulation published in the Official Gazette dated March 30, 2015, No. 29311, by adding the phrase "cryptocurrency service providers" after "payment and electronic money institutions." Additionally, with the newly added temporary Article 3, cryptocurrency asset service providers operating under the Capital Markets Law No. 6362 are required to apply to the Board within one month from the announcement of their activities. The regulation has come into force on the date of publication and is executed by the Minister of Treasury and Finance.
Regulatory Change on the Compliance Program for the Prevention of Money Laundering and Terrorism Financing This regulatory change includes cryptocurrency service providers among the obligated institutions in the compliance program for the prevention of money laundering and terrorism financing. With the addition of a provision to Article 4 of the regulation, cryptocurrency service providers have been included in the list of obligated entities. Furthermore, specific measures have been mandated for procedures requiring customer identification by cryptocurrency service providers.
In this regard, monitoring and control activities have been expanded to include decisions on asset freezing, and there is an obligation to monitor sender and recipient information in electronic transfers. The regulation will be executed by the Minister of Treasury and Finance, with effective dates determined for various articles to take effect at later dates.
Change in General Notice of the Financial Crimes Investigation Board The changes made in the notice published in 2021 prohibit cryptocurrency service providers facilitating the trading of privacy-based cryptocurrencies from conducting remote identity verification. Additionally, verification of customer identities has been made mandatory for transactions conducted by these service providers, and initial financial moves, including money transactions, must be processed through a compliant bank or credit card account. Remote identity verification processes must be verified using the identity sharing system database of the General Directorate of Population and Citizenship Affairs of the Ministry of Interior. The notice is executed by the Ministry of Treasury and Finance and has come into force on the date of publication.