The post Prison for No KYC? Turkey’s New Crypto Law Sparks Global Debate appeared first on Coinpedia Fintech News
The global crypto scene is booming, with Bitcoin touching its ATH in December breaking the historic target of $100k this year the interest in crypto assets is bound to increase. While countries are setting a softer crypto tone, Turkey has passed a law requiring cryptocurrency users to provide identification data for transactions exceeding $425. Interestingly, anyone in Turkey caught not doing KYC will have a prison sentence of up to 25 years for money laundering. The country is not compromising on its user safety and steps like this show they are open to digital assets yet keep a hawk eye on crypto usage. Will this move backfire? Let’s see how it will impact the investors.
In 2023, Turkey introduced its first legal framework for cryptocurrencies. This move has created a more secure and structured environment for investors, addressing long-standing concerns about trust and reliability in the market. Turkey is currently the fourth-largest crypto market globally, with a trading volume reaching $170 billion, surpassing Russia and Canada (as of September 2023).
Salim Karaman, CEO of BtcTurk, highlighted that these regulations are capturing investor attention and encouraging digitalization through tokenization projects.
Growing Interest from Investors
The approval of Bitcoin spot ETFs in the U.S. has had a ripple effect globally, inspiring more Turkish investors to explore crypto markets. Kutluhan Akcin, Turkey’s country manager at Bybit, noted that the country’s Capital Markets Board (SPK) has established a list of approved crypto platforms. This provides a much-needed layer of security for investors, ensuring they can trade on reliable and legal platforms. With uncertainties around the legal framework fading, both individual and institutional investors are showing greater confidence in Turkey’s crypto market.
Rising Trading Volumes and Institutional Growth
Despite strict laws, Turkey has seen an increase in its trading activity. OKX Turkey, for example, reported an impressive $2.5 billion in transactions since its launch in February 2024. CEO Mehmet Camir described 2024 as the “year of adoption” for crypto, with growing interest from institutional players such as pension funds and corporate treasuries. These developments underscore Turkey’s position as the largest crypto market in the Middle East and North Africa.
A Bright Future for Crypto in Turkey
Experts agree that Turkey’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 investments and a wider user base. With its strategic location and growing market activity, Turkey is set to become a key player in the global crypto space, fostering optimism for 2025 and beyond.
The regulation also extends to unregistered wallet addresses, mandating exchanges to collect complete information before processing transactions. Transactions lacking sufficient information may be classified as “risky” and temporarily suspended.
