Turkey is advancing its efforts to manage and regulate cryptocurrency exchanges by instituting robust legal frameworks. Although the government hasn’t yet introduced new tax measures, additional regulations are being placed on investors utilizing Turkish exchanges. These obligations aim to enhance compliance protocols.
What Are the New Cryptocurrency Regulations?
An amendment published on December 25, 2024, officially classified cryptocurrency exchanges as financial institutions. This classification requires these exchanges to meet the same anti-money laundering and anti-terrorism financing responsibilities that banks currently fulfill.
Globally, exchanges mandate customer compliance with Know Your Customer (KYC) checks in accordance with Financial Action Task Force (FATF) guidelines. While some exchanges ask for document uploads, others deploy facial and identity video recognition strategies. Turkey’s Financial Crimes Investigation Board (MASAK) has clarified these standards for exchanges based in the nation.
What Changes Will Users Experience?
The recent announcement mandates that cryptocurrency providers elevate user identity checks to match banking standards. This requires users to verify their identity via video interviews to ensure they are who they claim to be.
Crypto exchanges are responsible for confirming the accuracy of user names, birth dates, and identity details. Exchanges must implement remote communication methods for identity verification, eliminating the necessity for in-person interactions.
Verification methods are designed to minimize risks by gathering all essential information, making physical signatures redundant in remote processes. User identity data will be corroborated with official databases to deter falsehoods and streamline verification.
Innovatively, the notification includes countermeasures against deepfake technology. Extra layers of security involve biometric matching with ID photos and real-time validations via unique codes sent through electronic operators.
Exchanges failing to conform to these directives face stern administrative penalties. These detailed regulations aim to fortify financial transactions’ security and reliability in Turkey’s cryptocurrency landscape.
“These measures are crucial for safeguarding our financial ecosystem and enhancing the integrity of crypto operations,” a MASAK representative emphasized.
Turkey’s stricter regulatory environment for cryptocurrency exchanges underscores the nation’s focus on maintaining a secure and transparent financial system. The move towards comprehensive compliance practices places Turkey in line with global standards, fostering a safer investment platform for crypto users.
