Türkiye warns crypto risks fuel terror financing networks

Türkiye’s Treasury and Finance Minister Mehmet Simsek said emerging financial technologies, particularly crypto-assets and stablecoins, are increasingly being exploited by criminal organizations and terrorist financing networks. Speaking at the No Money For Terror Ministerial Conference in Paris, Simsek stressed that global coordination must keep pace with the speed of digital financial transactions.

Crypto-assets under global scrutiny

Addressing a panel on preventing the misuse of financial innovation, Simsek described modern financial technology as a “double-edged sword.” He noted that while digital payment systems improve speed and accessibility, they also create opportunities for illicit actors to move money across borders with limited oversight.

According to Simsek, stablecoins have become a growing concern for regulators and international watchdogs because they allow fast and relatively anonymous transfers. Referring to assessments by the Financial Action Task Force (FATF), he said such digital assets are increasingly preferred by terrorist financiers due to their accessibility and ability to preserve value during cross-border transactions.

Türkiye highlights early regulatory steps

The minister said Türkiye moved quickly to strengthen anti-money laundering and counterterrorism financing regulations in the crypto sector. He explained that virtual asset service providers were brought under national AML and CFT rules in 2021, while compliance obligations and licensing requirements were expanded.

Simsek also pointed to additional measures introduced by Ankara, including restrictions on stablecoin transfers and a nationwide ban on crypto ATMs. He stated that authorities imposed daily and monthly transaction limits as well as waiting periods for transfers that fail to meet international compliance standards.

Call for faster international coordination

The Turkish minister argued that international cooperation remains critical because criminal groups can transfer funds globally within seconds. “When a suspicious wallet is identified, information must travel in hours, not weeks,” he said.

He warned that financial innovation will continue evolving rapidly, forcing governments and regulatory institutions to constantly adapt. Simsek added that uneven implementation of FATF standards across countries creates vulnerabilities that organized crime networks can exploit.

The Paris conference brought together policymakers and financial experts to discuss global efforts against terrorism financing, cybercrime and illicit digital transactions affecting international markets, including Europe, the Middle East and Türkiye.