Prison for No KYC? Turkey’s New Crypto Law Sparks Global Debate
The global cryptocurrency scene is booming, and with Bitcoin hitting its highest peak in December and surpassing its all-time target of $100,000 this year, interest in crypto assets is set to increase. While countries are setting a softer tone for cryptocurrencies, Türkiye has Passed A law requires cryptocurrency users to provide identity data for transactions over $425. Interestingly, in Türkiye, anyone who fails to perform KYC will be sentenced to up to 25 years in prison for money laundering. The country will not compromise on user security, and such a move shows that they are open to digital assets but maintain a hawkish focus on the use of cryptocurrencies. Will this move be counterproductive? Let’s see how it affects investors.
In 2023, Türkiye launched its first legal framework for cryptocurrencies. The move creates a more secure and structured environment for investors and addresses long-standing concerns about market trust and reliability. Turkey is currently the fourth largest cryptocurrency market in the world, with trading volume reaching $170 billion, surpassing Russia and Canada (as of September 2023).
BtcTurk CEO Salim Karaman emphasized that these regulations are attracting investors’ attention and encouraging digitization through tokenization projects.
Investor interest is growing
The U.S.’s approval of a Bitcoin spot ETF has had a ripple effect around the world, inspiring more Turkish investors to explore the cryptocurrency market. Bybit Türkiye country manager Kutluhan Akcin noted that the country’s Capital Markets Commission (SPK) has developed a list of approved crypto platforms. This provides investors with much-needed security, ensuring they can trade on a reliable and legal platform. Individual and institutional investors are showing greater confidence in Türkiye’s cryptocurrency market as uncertainty over the legal framework fades.
Rising trading volumes and institutional growth
Despite strict legal regulations, trade activity in Türkiye has increased. For example, OKX Turkey has seen an impressive $2.5 billion in trading volume since its launch in February 2024. CEO Mehmet Camir described 2024 as the “year of adoption” for cryptocurrencies, with growing interest from institutional players such as pension funds and corporate finance. These developments highlight Türkiye’s position as the largest cryptocurrency market in the Middle East and North Africa.
A bright future for Turkish cryptocurrencies
Experts agree that Türkiye’s regulatory framework is a game-changer for the crypto industry. By creating an organized and trustworthy environment, the country is paving the way for increased institutional investment and an expanded user base. With its strategic location and growing market activity, Turkey will become a key player in the global cryptocurrency space, creating optimism for 2025 and beyond.
The regulations also extend to unregistered wallet addresses, requiring exchanges to collect complete information before processing transactions. Transactions lacking sufficient information may be classified as “at risk” and temporarily halted.
