In recent years, Turkey has taken significant steps to structure its cryptocurrency exchanges by implementing comprehensive legal frameworks. While new taxation measures have yet to be introduced, additional regulations are being applied to investors using Turkey-based exchanges. These additional obligations are aimed at strengthening compliance measures.
Updated Cryptocurrency Rules
On December 25, 2024, an amendment in the official gazette recognized cryptocurrency exchanges as financial institutions. This development obliges these exchanges to adhere to the same anti-money laundering and anti-terrorism financing obligations that banks follow.
Globally, exchanges require their customers to undergo Know Your Customer (KYC) verifications under FATF rules. While some platforms only require document submission, others utilize methods like facial recognition and identity video verification. Turkey’s Financial Crimes Investigation Board (MASAK) has clarified these standards for Turkey-based exchanges.
The updated notification includes broader rules focusing on the identification of clients and their identification processes, including precautions when dealing with politically exposed individuals.
Mandatory Video Conferencing
One of the most crucial aspects of the latest notification is identity verification. Cryptocurrency service providers are now mandated to ensure identity verification for users at banking standards. Users’ identity information must be confirmed through video interviews to ascertain they are who they claim to be.
The responsibility to verify the accuracy of names, birth dates, and identity card information lies with the crypto exchanges. It is also now obligatory for the identity verification process to incorporate methods involving remote communication tools, allowing customer identity verification without face-to-face contact.
The methods deployed will be crafted to ensure a minimum risk level and include all necessary information, omitting the need for a signature when verifying identity remotely. Furthermore, users’ information must be cross-verified against official databases to prevent false information and circumvent procedural formalities.
The notification is detailed enough to include measures against deepfake technologies. Additional checks include biometric comparisons with identity photos and real-time authentication using a unique code sent via electronic communication operators.
Failure to comply with these obligations will result in administrative fines for exchanges. The emphasis on detailed compliance aims to reinforce the safety and integrity of the financial operations within the cryptocurrency sphere in Turkey.
