Turkey Tightens Crypto Regulations to Combat iGaming Money Laundering

Turkey Tightens Crypto Regulations to Combat iGaming Money Laundering

The Turkish government has announced new restrictions on cryptocurrency exchanges aimed at curbing money laundering linked to illegal online gambling and fraud.

New Oversight and Compliance Measures

Mandatory Transaction Descriptions

All users on crypto exchanges will be required to include transaction descriptions of at least 20 characters, clearly stating the source of funds. This rule applies to all types of crypto transactions.

Temporary Freezes on Transfers

To enhance monitoring of crypto flows, the following restrictions are being implemented:

  • Crypto withdrawals not compliant with the “Travel Rule” will be delayed for at least 48 hours after purchase, exchange, or deposit.
  • The first withdrawal from any new account will be frozen for 72 hours.

Stablecoin Transfer Limits

New thresholds are being introduced for transactions involving stablecoins:

Restriction Type Limit
Daily Limit $3,000
Monthly Limit $50,000

If a crypto exchange fully complies with the “Travel Rule” — including collecting full sender and recipient details (name, address, date and place of birth, wallet) — these limits may be doubled.

Regulatory Objective: Cracking Down on Criminal Activity

The new regulations are designed to prevent the use of cryptocurrencies in money laundering schemes tied to illegal betting and fraud. According to the Ministry of Finance, illicit networks often exploit crypto platforms to quickly legitimize and transfer funds abroad.

Monitoring of Fund Origins and Purposes

Crypto platforms are now required to thoroughly monitor:

  • The origin of funds being transferred;
  • The intended use of those funds;
  • Compliance of transactions with applicable regulations.

What Won’t Change

Finance Minister Mehmet Şimşek emphasized that legitimate traders and participants in the legal crypto market — including market makers and arbitrage traders — will not be affected by the new restrictions, provided that they can document the sources of their funds.

Exemptions from Limits

Users who submit full information and use crypto for liquidity provision or arbitrage activities will be able to make unrestricted transfers, as long as these are processed through platforms that comply with all regulatory requirements.

Responsibility of Crypto Exchanges

All exchanges will be required to fully comply with the new regulations. Non-compliance may result in:

  • Administrative penalties;
  • Legal action;
  • Financial fines;
  • Revocation or denial of licensing.

Mehmet Şimşek stated that these measures are essential to ensure user safety and financial system stability.

Conclusion

The Turkish government is ramping up efforts to combat illegal activity in the crypto space. While regulations are tightening, law-abiding participants will retain full access to services — as long as they operate transparently and within legal boundaries.