Crypto warning from Mehmet Şimşek: A new era has begun

Minister of Treasury and Finance Mehmet Şimşek spoke about the work of the Financial Crimes Investigation Board (MASAK) regarding crypto asset service providers and payment institutions.

Speaking to an AA reporter, Şimşek recalled his previous warning to financial institutions not to act as intermediaries for sharing citizens' personal and financial information with illegal betting sites, and reminded them of certain regulations published by MASAK in the Official Gazette dated December 25, 2024, regarding this matter.

Warning those who do not comply with the strict regulations introduced by the legislative changes that are coming into effect gradually, Şimşek pointed out that these individuals will face heavy sanctions. He stated that significant regulations have been made on many issues, primarily regarding MASAK obligations for crypto asset service providers and payment and electronic money institutions. 

Minister Şimşek, who advocates for these regulations to make the financial system more reliable and transparent, stated that the issue of full compliance with the regulations has been shared with all industry stakeholders through the Banks Association of Turkey, the Participation Banks Association of Turkey, and the Capital Markets Association of Turkey.

Addressing stakeholders in the financial sector on the subject, Şimşek said:

"We are taking decisive steps to bring our country's financial system into compliance with international standards. We will not allow those who want to abuse our financial system to get away with it. Crypto asset service providers must now fulfill their responsibilities as part of the financial system. Within the scope of the new regulations, crypto asset service providers have also been included among the financial institutions subject to the same obligations as banks, brokerage firms, and insurance companies in terms of MASAK legislation." 

BAN ON CRYPTO TRANSFERS

Drawing attention to the new obligations that crypto asset service providers must fulfill in this context, Şimşek continued:

"Crypto asset service providers are required to prepare compliance programs and appoint compliance officers. It is important that they establish risk management and customer transaction monitoring mechanisms, register with the electronic notification system, and implement detailed customer due diligence measures. These institutions are required to fulfill important obligations, such as ensuring that initial financial transactions are conducted through banks. In crypto asset transfers, it has become mandatory to obtain detailed information in transfer messages, known in international literature as the 'travel rule.' If this information is incomplete, transfer transactions will not be permitted."

"'Stable crypto assets,' which have been identified as being used extensively in money laundering and terrorist financing, are also being closely monitored. Necessary regulations in this area will also be made by MASAK in the near future. 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 using simplified procedures. Transactions made through virtual and physical POS terminals and the use of these terminals in accordance with business relationships must also be strictly monitored. We are also closely monitoring payment institutions in terms of actions aimed at laundering proceeds of crime, especially illegal betting and fraud."

News Source: 12punto