Türkiye tightens oversight of digital asset platforms and payment providers in push to bolster financial integrity
Treasury and Finance Minister Mehmet Şimşek has issued a stark warning to crypto companies and payment service providers, signalling a new era of stringent oversight as Türkiye intensifies its campaign against financial misconduct.
Speaking on the government’s newly implemented regulatory framework, Şimşek declared that Türkiye’s financial system “will not tolerate any form of misuse or malpractice.” His comments follow a raft of anti-money laundering regulations introduced by the Financial Crimes Investigation Board (MASAK), which were formally published in the Official Gazette on December 25, 2024.
“We will not allow those seeking to exploit it any leeway. Crypto asset service providers must now fulfill their responsibilities as integral parts of the financial system,” the minister said.
Şimşek, who has previously cautioned financial institutions about the dangers of data sharing with illegal betting networks, reiterated that the state will show “no tolerance” for non-compliance. The phased regulations come with significant penalties and align crypto service providers, payment institutions, and e-money platforms with traditional financial entities such as banks, insurance companies, and brokerages.
“Türkiye is taking decisive steps to align our financial system with international standards,” Şimşek added, emphasising the government’s intent to harmonise local practices with global financial crime prevention protocols.
As part of the updated framework, crypto asset service providers must now meet a range of operational requirements. These include establishing internal compliance programs, appointing compliance officers, and introducing risk management and transaction monitoring systems. Firms are also required to register with the national electronic notification platform and implement enhanced customer due diligence procedures.
Initial financial transactions involving digital assets must be processed through banks, while crypto transfers are now subject to the “travel rule,” which mandates the recording of detailed transaction information. Transfers with missing or incomplete data will be blocked, Şimşek warned.
He noted that additional scrutiny would be applied to privacy-oriented cryptocurrencies often associated with illegal trade. Platforms dealing in such assets face tighter onboarding controls, while stablecoins—linked in some cases to money laundering and terrorism financing—are also under review. MASAK is expected to announce further regulations addressing stablecoins in the near future.
Şimşek also turned his attention to payment institutions, announcing the end of simplified onboarding procedures. Transactions via both virtual and physical point-of-sale (POS) terminals must now strictly correlate with legitimate business activity. These activities will be actively monitored for signs of money laundering, fraud, or illegal betting.
“We are vigilantly tracking payment institutions to curb illicit financial flows,” Şimşek stated.
He explained that relevant stakeholders, including the Banking, Participation Banking, and Capital Markets unions, had been notified of the updated guidelines to ensure sector-wide compliance.
In conclusion, Şimşek affirmed that the new measures are intended to enhance the transparency and resilience of Türkiye’s financial infrastructure. The reforms aim to create a system that remains “a robust barrier against criminal activities,” safeguarding both the integrity of institutions and the trust of citizens.
