Turkey is imposing a regulation that will require exchanges to report large transactions, including Bitcoin (BTC).
In an interview on CNN Turkey, the Finance Minister, Lutfi Elvan, said that exchanges would have to report crypto purchases worth more than 10,000 Turkish Lira, equivalent to $1,200, to the Financial Crimes Agency. This will ensure the exchanges are compliant with the country’s Anti-money Laundering Laws.
Elvan added that the exchange would be given 10 days from the days of the transaction to report customers who make large transactions. The minister, however, clarified that Turkey was not undermining crypto and its users but was only complying with the Financial Action Task Force (FAFT) international standards for AML regulations.
Protecting crypto investors
The Turkish government is rushing to ensure that the crypto space is regulated to protect investors. This comes after two crypto exchanges in the country seized operations. Thodex, a leading exchange in the country, closed with more than $2 billion worth of cryptocurrencies belonging to users. The authorities are still looking for the CEO.
A few days after, the head of Turkey’s Central Bank revealed that a new crypto regulatory framework would be launched. However, he stated that exchanges would most likely be allowed to continue with operations.
Speaking to CNN Turkey, Elvan added that, “I often hear from citizens who invest in crypto, and when I ask them what crypto is, they often have no idea.” This comment raised speculation that the new framework may include investor education. However, it is not clear when Turkey will launch the new regulations.
Turkey Changing Crypto Regulations
The demand for cryptocurrencies in Turkey has been high following the declining value of the Turkish Lira. This has made Bitcoin the preferred store of value by residents in the country to mitigate inflation.
The addition of crypto exchanges to the firms required to comply with AML regulations is not the only change the government has made. In April, the Turkish government banned the use of cryptocurrencies as a method of payment. Regulators in the country think the existing legal framework for crypto is inadequate.
Towards the end of April, the government also announced it was creating a central bank custodian for exchanges. The custodian will protect investor funds in the event of crypto exchanges shutting down. Two exchanges have recently failed in the country, with clients losing substantial sums.