Turkey is amping up its cryptocurrency regulations by rolling out new rules for cryptocurrency asset service providers (CASPs) including exchanges and custodial services. The nation’s Capital Markets Board (CMB) published the regulations on March 13, cementing their authoritative control over crypto asset platforms in Turkey. This comprehensive framework encompasses all the necessary standards for setting up and operating crypto services, imposing stringent capital requirements and compliance measures on the establishments.
The new regulations define the minimum capital requisite for exchanges to be $4.1 million, while custodial services are required to have a base capital of at least $13.7 million. These services are also expected to invest heavily in compliance infrastructure, set up risk management teams, and launch a price monitoring system to detect suspicious trading activities. The regulations also mandate adherence to stringent reporting protocols to the CMB about these services’ operations.
Enforcing stringent Anti-Money Laundering (AML) standards in the crypto realm, the new regulations require that CASPs record comprehensive transaction information, including incomplete and canceled transactions. In terms of past regulations, Turkey had introduced AML regulations for cryptocurrency in December 2024, which required users to share identifying information for transactions over 15,000 Turkish liras.
Despite these strict regulations, certain crypto services will be given leeway. For instance, exchanges can initiate initial coin offerings, provided they thoroughly review the relevant smart contracts and meet listing criteria. However, derivative transactions involving crypto are prohibited by the CMB’s new regulations. Also, the buying of goods and services using crypto is still deemed illegal due to Turkey’s central bank regulations.
These latest regulations, according to an attorney, will come into effect mostly by June 30, 2025. The framework is believed to align with international standards complying with regulatory approaches set by Europe’s Markets in Crypto-Assets Regulation (MiCA) and the U.S. Securities and Exchange Commission.