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Authority Reforms Turkey's Crypto Landscape with New Regulations

Turkey's Financial Crimes Investigation Board (MASAK) has announced a rigorous new regulatory framework for crypto assets, prompting significant changes in the market.

This new directive, communicated through general communique No.29, aims to modify operations for virtual asset service providers under Law No. 5549, focusing on preventing money laundering activities.

Prominent crypto analyst Burak Kesmeci highlighted the introduction of a mandatory waiting period for crypto transactions, stipulating a 72-hour hold for first-time withdrawals and a 48-hour hold for subsequent transactions.

These delays are designed to enhance scrutiny of potential fraudulent activities, although Kesmeci criticized the move as detrimental to traders, particularly impacting short-term trading strategies.

Another major provision includes transfer limits for stablecoins, set between $3,000 to $6,000 daily and $50,000 to $100,000 monthly, while users can transfer Bitcoin and Ethereum without restrictions.

Kesmeci noted this regulation stems from earlier guidelines established in 2021 that specifically referenced stablecoins, showcasing the evolving regulatory focus.

In addition to transaction rules, MASAK mandates that exchanges must report new token listings to Turkey's Public Disclosure Platform, enhancing transparency for crypto users.

A strict custody requirement also stipulates that 95% of user funds must be securely stored with approved custodians, limiting the available funds on exchanges to just 5%.

This enforcement aims to prevent failures similar to notable incidents involving platforms like FTX and Thodex, providing additional safety for investors.

As Turkey embraces these stringent regulations, the crypto landscape is poised for transformative changes that prioritize user protection while navigating the complexities of digital assets.