Minister Şimşek warned, saying, "There are severe penalties": We will not allow any leeway.

16.04.2025 14:50

The Minister of Treasury and Finance, Mehmet Şimşek, warned cryptocurrency service providers and payment institutions. Reminding that cryptocurrency service providers are included among financial institutions subject to the same obligations as banks, brokerage firms, and insurance companies under MASAK regulations, Şimşek stated, "We will not allow those who want to abuse our financial system."

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Şimşek evaluated the work carried out by MASAK regarding cryptocurrency service providers and payment institutions.

Reminding that he had previously warned financial institutions not to facilitate the sharing of citizens' personal and financial information with illegal betting sites, Şimşek stated that some regulations were published in the Official Gazette dated December 25, 2024, by MASAK to protect the financial system and to combat illicit proceeds more effectively.

HEAVY SANCTIONS FOR THOSE WHO DO NOT COMPLY WITH THE REGULATION

Şimşek drew attention to the fact that those who do not comply with the strict regulations introduced by the gradually implemented legislative changes will face heavy sanctions, stating that significant regulations have also been made on many issues, especially regarding the obligations of cryptocurrency service providers and payment and electronic money institutions to MASAK.

Emphasizing that these regulations will ensure a more reliable and transparent financial system, Şimşek expressed that the issue of full compliance with the new regulations has been shared with all sector stakeholders through the Turkish Banks, Turkish Participation Banks, and Turkish Capital Markets associations.

Addressing stakeholders in the financial sector regarding the issue, Şimşek said:

"We are taking determined steps to align our country's financial system with international standards. We will not allow those who want to misuse our financial system. Cryptocurrency service providers are now required to fulfill their responsibilities as part of the financial system. Under the new regulations, cryptocurrency service providers have also been included among financial institutions subject to the same obligations as banks, brokerage firms, and insurance companies in terms of MASAK legislation."

"NO PERMISSION WILL BE GIVEN FOR CRYPTO TRANSFER TRANSACTIONS"

Highlighting the new obligations that cryptocurrency service providers must fulfill, Şimşek noted:

"Cryptocurrency service providers need to prepare compliance programs and appoint compliance officers. It is important for them to establish risk management and customer transaction monitoring mechanisms, register with the electronic notification system, and implement detailed customer identification measures. These institutions are required to fulfill significant obligations, such as conducting initial financial transactions through banks. In cryptocurrency transfers, obtaining detailed information in transfer messages, known internationally as the 'travel rule,' has become mandatory. If there are deficiencies in this information, transfer transactions will not be permitted."

"STABLE CRYPTO ASSETS ARE ALSO BEING CLOSELY MONITORED"

Şimşek stated that strict measures have been introduced to make it more difficult for platforms facilitating the buying and selling of privacy-based cryptocurrencies, which increase anonymity and are used in illegal transactions, to accept customers, and provided the following information:

"Stable cryptocurrencies, which have been identified as being heavily used in money laundering and the financing of terrorism, are also being closely monitored. Necessary regulations will be made in this area by MASAK in the near future. MASAK's new regulations directly concern not only cryptocurrency platforms but also payment institutions. Payment institutions will no longer be able to accept customers through simplified procedures. Transactions made through virtual and physical POS terminals and the compliance of these terminals with business relationships must also be closely monitored. We are closely monitoring payment institutions in terms of actions related to the laundering of illicit proceeds, especially illegal betting and fraud."