Turkey Imposes $3,000 Daily Limit on Stablecoin Transfers to Curb Fraud

Turkey has implemented stringent new regulations aimed at curbing the risks of fraud and money laundering associated with cryptocurrencies. The Ministry of Treasury and Finance has announced measures to prevent the misuse of digital assets, particularly from illegal betting and fraudulent activities. These regulations will significantly impact how crypto transactions are conducted within the country.

The new rules include a daily limit of $3,000 and a monthly limit of $50,000 on stablecoin transfers. Stablecoins, which are virtual currencies pegged to real-world values such as the American dollar, will be subject to these restrictions. However, platforms that fully comply with the travel rule, which involves sharing information about the sender and receiver, may be permitted to double these limits. This provision aims to reward platforms that adhere to safety stipulations with greater flexibility.

Additionally, the government will impose time delays on non-compliant crypto withdrawals. Any transaction that does not comply with the travel rule will be delayed by a minimum of 48 hours. For first-time withdrawals from an account, the delay will be at least 72 hours. These delays are intended to prevent the rapid removal of illegal funds, enhancing the overall security of the financial system.

The regulations also mandate that Crypto Asset Service Providers (CASPs) track transactions more rigorously. Each transaction will require users to provide information about the origin of the funds and the purpose of the transfer. Furthermore, users will need to include a brief comment (no less than 20 characters) with each transaction. This additional layer of scrutiny will help detect suspicious activities more effectively.

In December 2024, Turkey made it mandatory for individuals to provide personal details for crypto transactions exceeding 15,000 Turkish Lira (approximately $425). This regulation was designed to prevent the use of digital assets in terrorism or other criminal activities. The new regulations build upon and enhance these existing measures, further strengthening the oversight of crypto transactions.

Mehmet Simsek, the Treasury and Finance Minister, emphasized the importance of these changes. He clarified that the aim is not to prevent the legal use of cryptocurrencies but to ensure that criminals cannot misuse the system. Legal activities such as market making or arbitrage will not face stern constraints, but they will remain under surveillance by the platforms used.

Levent Yildirim Şimşek, another key figure in the Ministry, warned crypto platforms about the consequences of non-compliance. Any provider that fails to adhere to the new rules will face severe penalties, including fines, loss of license, or even a ban on operation. This stern warning underscores the government's commitment to enforcing the new regulations.

Overall, Turkey is undertaking significant measures to ensure the safe and legal use of cryptocurrencies. Through improved monitoring, time delays, and strict restrictions, the government aims to create a secure environment for honest crypto activities while deterring illegal operations. These steps are part of a broader plan to reduce the speed of illegal activities and oversee the crypto trading process more effectively.