Cryptocurrency Statement from Mehmet Şimşek: Warned, Strict Supervision Begins! - Coin Newsletter

Minister of Treasury and Finance Mehmet Şimşek made important statements regarding the new regulations imposed by MASAK on crypto asset service providers and payment institutions.

Speaking to Anadolu Agency, Minister Mehmet Simsek stressed the decisive steps taken to bring Turkey's financial system in line with international standards. He warned that crypto-asset service providers that do not comply with the new regulations will face heavy sanctions. Şimşek stated that the inclusion of crypto assets in the financial system will increase financial security.

We are taking decisive steps to bring our country's financial system in line with international standards. We will not turn a blind eye to those who want to abuse our financial system. Crypto-asset service providers now have to fulfill their responsibilities as part of the financial system. Under the new regulations, crypto-asset service providers are also included among the financial institutions subject to the same obligations as banks, brokerage houses and insurance companies in terms of MASAK legislation.

New obligations: Strict supervision of crypto transfers

Minister Şimşek said that with the regulations published by MASAK, it has become mandatory to obtain detailed information, known as the "travel rule", in crypto transfers. These rules aim to prevent illegal transactions by ensuring that crypto asset transfers are supervised:

Crypto asset service providers are required to prepare a compliance program and appoint a compliance officer. It is important for them to establish risk management and customer transaction monitoring mechanisms, to register in the electronic notification system, and to implement detailed customer identification measures. These institutions have an obligation to fulfill important obligations, such as making the first financial transactions through the bank. In crypto asset transfers, it has become mandatory to obtain detailed information in the transfer messages, known as the 'travel rule' in the international literature. If this information is missing, transfers will not be allowed.

Increased oversight over stable crypto assets

Şimşek stated that new measures have been introduced that will make it difficult to use privacy-based crypto assets. He said that stable crypto assets, especially those used in money laundering and terrorism financing, will also be closely monitored. He pointed out that MASAK's regulations in this area will be made in the near future:

• 'Stable crypto assets', which are found to be used extensively in money laundering and terrorism financing, are also closely monitored. Necessary arrangements will be made in this area by MASAK in a short time. MASAK's new regulations directly concern not only crypto-asset platforms but also payment institutions. Payment institutions will no longer be able to accept customers in a simplified manner. Transactions made through virtual and physical POS terminals and the use of these terminals in accordance with the business relationship should also be strictly monitored. We also closely monitor payment institutions for actions aimed at laundering proceeds of crime, especially illegal betting and fraud.*

The minister noted that payment institutions will no longer be able to accept customers in the simplified procedure. In addition, he stated that transactions made through virtual and physical POS terminals will be strictly monitored and a stronger control mechanism will be established against illegal activities.