Efforts to prevent money laundering continue. Minister of Treasury and Finance Mehmet Şimşek has warned that crypto currency exchanges and payment institutions could face severe sanctions.

Sanctions will be enforced on crypto currency exchanges that do not comply with the rules. Financial Crimes Investigation Board (MASAK) implemented new regulations four months ago to prevent money laundering. Conditions to be followed by crypto currency service providers were specified.

Minister of Treasury and Finance Mehmet Şimşek reminded relevant institutions about these regulations.

Şimşek stated that those who do not comply with the rules will face severe sanctions, saying, “We will not turn a blind eye to those who seek to misuse our financial system. Crypto asset service providers now have the obligation to fulfill their responsibilities as part of the financial system.” Crypto currency exchanges are now required to obtain detailed information from users known as the “travel rule.” Minister Şimşek announced that transfer transactions will not be made in case of missing information. He also stated that the regulations include payment institutions.

“We Are Also Closely Monitoring Payment Institutions”

Şimşek warned, “We are closely monitoring payment institutions in terms of actions related to the laundering of crime proceeds, especially illegal gambling and fraud.” According to the new regulations, crypto currency exchanges will not prepare a compliance program. They will establish risk management and customer transaction monitoring mechanisms. Additionally, users will conduct their initial financial transactions through banks.