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Turkey and crypto exchanges are also subject to AML / CFT regulations


To apply AML / CFT rules

The Turkish government is tightening regulations on crypto assets (virtual currency). Earlier this month, it was discovered that it added a cryptocurrency trading platform to its list of regulated companies for anti-money laundering (AML) and anti-terrorism financing (CFT).

According to an executive order issued on May 1, the rule will come into force immediately, making it easier for financial observers to investigate cryptocurrency holdings.

Turkey has just banned the use of cryptocurrencies to settle goods and services since April 30th. Immediately after the ban policy was announced, the chaotic situation continues, with Turkey’s fourth-largest exchange “Vebitcoin” suddenly shutting down.

The exchange said on its website that it was “financially very difficult”, suggesting a run on the ban. Turkish officials have detained CEO lker Baş and three others on the 24th of last month, although no actual details have been given.

In Turkey, another exchange, Thodex, has suddenly lost access to its account, and an investigation is underway on suspicion of exit fraud.

Relation: Turkish cryptocurrency exchange in a whirlpool, suspicious external remittance from 2020?

To strengthen virtual currency regulation

In addition to banning the use of cryptocurrency payments and making exchanges subject to AML / CFT regulations, the Turkish government is trying to regulate cryptocurrencies from various directions.

Anonymous Turkish government sources say they are planning to set up a central custody institution for cryptocurrencies to eliminate counterparty risk, according to Bloomberg reports.

It is also considering setting capital requirements for cryptocurrency exchanges and conducting educational activities for executives of related companies.

Turkey where virtual currency is spreading

In Turkey, Turkish citizens are looking to alternative assets to protect their property from inflation of up to 16% and the depreciation of fiat tender lira due to inflation.

According to a survey by data company Statista, Turkey had the fourth highest penetration rate of cryptocurrencies in the world in 2020, along with Peru in South America.

Source: Statista

The survey surveyed 1,000 to 4,000 people in each country and asked if they owned or used cryptocurrencies. Respondents from Turkey and Peru reported that 16% own or use cryptocurrencies.

Like Turkey, Nigeria, which suffers from fiat inflation, is ranked first. From Southeast Asia, Vietnam and the Philippines were ranked 3rd and 4th, respectively.

In this survey, Denmark and Japan had the lowest penetration rates. Only 4% of respondents said they had owned or used cryptocurrencies.

In a questionnaire conducted by bitFlyer in Japan and the United States, the temperature difference in the investment itself is remarkable, with 82% of the respondents in the United States investing and 69% of the respondents in Japan not investing. It was.


Author: A. Yamada
Reference: Bloomberg, Statista

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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