Turkey Tightens Crypto Rules to Curb Illegal Betting and Fraud Money Laundering

To prevent the laundering of funds obtained from illegal betting and fraud through cryptocurrencies, Turkey’s Ministry of Treasury and Finance is introducing new regulatory measures targeting crypto transactions and platforms.
The upcoming rules aim to establish stricter oversight of crypto asset transfers, requiring detailed transaction tracking, delayed withdrawals, and transfer limits on stablecoins, particularly in cases where travel rule protocols are not enforced.
Mandatory 20-Character Note on All Crypto Transfers
All cryptocurrency transfers in Turkey will soon be required to include a minimum 20-character transaction description, allowing authorities to trace the source and intent of each operation. Crypto Asset Service Providers (CASPs) will be responsible for collecting and reporting this data as part of enhanced due diligence.
Withdrawal Delays for Unverified Transfers
To slow the movement of suspicious funds, withdrawals made after purchases or swaps will be delayed by at least 48 hours if the travel rule (which requires sender/receiver ID verification) is not applied. For new accounts or first-time withdrawals, this window extends to 72 hours.
New Limits on Stablecoin Transfers
Authorities are also targeting stablecoins, which are often used in fraudulent transfers due to their price stability and liquidity. Under the new rules:
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Daily stablecoin transfer limit: $3,000
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Monthly transfer limit: $50,000
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Exception: CASPs that fully comply with travel rule obligations may double these limits.
Legitimate Users and Institutional Traders Exempt
Treasury and Finance Minister Mehmet Şimşek emphasized that the rules are not intended to hinder legitimate crypto activity. “These measures aim to bring transparency to crypto transactions without undermining the innovation and economic value of the crypto ecosystem,” he said.
Users conducting verifiable activity such as liquidity provision, market-making, or cross-market arbitrage will be able to transact without limits, provided platforms ensure compliance and oversight.
Penalties for Non-Compliant Platforms
Platforms that fail to comply with the new framework will face administrative penalties, including denial or revocation of licenses. Şimşek stressed the importance of full compliance to safeguard user security and maintain financial system integrity.