Turkey Tightens Crypto Rules With 48-Hour Withdrawal Delays And $3,000 Daily Limits

Turkey is set to enforce stricter regulations on cryptocurrency transactions to combat money laundering and financial crimes. The proposed measures require crypto platforms to collect detailed information on the origin and purpose of every transfer. Users will need to provide a transaction description of at least 20 characters for each transfer. Additionally, platforms will be required to apply holding periods on crypto withdrawals when the Travel Rule does not apply, including a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account.

The regulations are part of a broader crackdown by the Ministry of Treasury and Finance, which is accelerating its oversight of crypto asset service providers (CASPs). The ministry will also introduce daily and monthly limits on stablecoin transfers to prevent the rapid outflow of illicit funds, especially from crimes like illegal betting and fraud. Users will be limited to $3,000 per day and $50,000 per month. Platforms that fully comply with Travel Rule obligations will be permitted to apply these limits at double the threshold.

Treasury and Finance Minister Mehmet Şimşek emphasized that the goal is to curb criminal misuse without stifling legitimate activity. “Legitimate crypto asset activities will be maintained,” he said. He also noted that various legal and financial sanctions, including denial of license or cancellation, may be imposed on platforms that do not comply with the new regulations. Transfers related to liquidity provision, market making, and arbitrage will be exempt from the limits provided they are monitored under the responsibility of the relevant platform.

The recent proposed rules mark one of Turkey’s most comprehensive steps to align its crypto regulations with international standards, including frameworks such as the European Union’s Markets in Crypto-Assets (MiCA) framework. In March, Turkey’s Capital Markets Board (CMB) introduced licensing and operational rules for CASPs. The framework grants the CMB full authority over crypto exchanges, wallet providers, and custodians, aligning national oversight with global regulatory standards. The rules set strict requirements for establishing CASPs in Turkey, including criteria for executive backgrounds, shareholder structures, and minimum capital thresholds. Crypto exchanges must hold at least $4.1 million in capital, while custodians need $13.7 million.

These new regulations are expected to have a significant impact on the cryptocurrency landscape in Turkey. Platforms will need to adapt their operations to comply with the stricter requirements, which may involve investing in enhanced data collection and verification systems. Users may also experience changes in how they conduct transactions, with increased scrutiny and potential delays as platforms implement the new rules. The move underscores Turkey's commitment to regulating the cryptocurrency sector, reflecting a growing trend among regulators to impose stricter controls on crypto transactions to ensure financial stability and security.