In recent years, use of crypto assets in financial crimes, such as money laundering, cyber-attacks, narcotics and trafficking, has sky rocketed. Research by international organizations such as FATF and INTERPOL reaffirm this alarming situation. In order to prevent further crypto-related crimes, Turkey’s Financial Crimes Investigation Board introduced new measures to further regulate crypto currency transactions and trade.

Under the new rules, crypto asset withdrawals or transfers will be delayed by an intermediary crypto platform at least 48 hours following the relevant asset being purchased, exchanged or deposited. The delay will be extended to 72 hours when the withdrawal is the first withdrawal by the customer.

For stablecoin (crypto assets fixed to another value) withdrawals, including transfers to other crypto platforms, a daily limit of USD 3,000 and a monthly limit of USD 50,000 shall apply as a rule. These limits may be doubled if the personal or transactional information required under the relevant money laundering and anti-terrorism regulations is duly provided to the intermediary crypto platform. The limits can be avoided if the crypto platform concludes that the transaction requested by its customer is for the purposes of (i) providing liquidity; (ii) market making; or (iii) inter-market arbitrage (provided that, amongst others, there exists a resolution of the board of directors).

Lastly, each crypto asset transfer should include a description of the purpose of the transfer, which will not be less than 20 characters.

Crypto asset service providers who fail to comply with the new rules shall be subject to penalties imposed under relevant money laundering and anti-terrorism legislation.

Please feel free to contact us should you require further information or assistance.