Turkey Plans Law Allowing Watchdog to Freeze Crypto Accounts

Turkey Moves to Empower Financial Watchdog to Freeze Bank and Crypto Accounts in Anti-Money Laundering Push

  • Turkey plans to give its financial watchdog, Masak, power to freeze both bank and cryptocurrency accounts.
  • The proposed law is part of broader efforts to prevent money laundering and follows recommendations from the Financial Action Task Force (FATF).
  • If introduced, the law will allow authorities to freeze or restrict accounts and wallets suspected of criminal activity.
  • Cryptocurrency use continues to grow in Turkey, driven by economic instability and sharp declines in the Turkish currency.
  • Authorities are also working on new rules that require exchanges to monitor transactions and limit stablecoin transfers.

The Turkish government is preparing new legislation that would allow its financial crimes authority, Masak, to freeze both cryptocurrency and traditional bank accounts. This move aims to tackle money laundering and other illegal financial activities, according to people familiar with the plans.

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The proposed changes, first reported by Bloomberg, would expand Masak‘s anti-money laundering powers. The agency would be able to freeze accounts used for illegal purposes, place limits on transfers, and blacklist digital wallets linked to crime. The government is expected to introduce the bill in parliament, though no specific date has been announced.

The new measures are in line with guidelines from the Financial Action Task Force (FATF), an international organization that sets global standards to combat money laundering and terrorist financing. A core target of the legislation is to stop the use of so-called “rented accounts,” which criminals use for illegal gambling or fraud.

Although cryptocurrency use and trading remain legal in Turkey, the government has increased oversight of digital assets. As Cointelegraph noted, the finance ministry is drafting rules that will require crypto exchanges to collect more detailed information on the source and purpose of transactions. There will also be new limits on transactions involving stablecoins—digital currencies pegged to traditional assets like the US dollar.

In July, the Capital Markets Board (CMB), one of Turkey’s main financial regulators, blocked several platforms offering unauthorized digital asset services. One notable case involved access restrictions to PancakeSwap, a popular decentralized exchange.

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Cryptocurrency adoption has increased rapidly in Turkey. According to the Chainalysis Global Crypto Adoption Index, released in September, Turkey ranks 14th worldwide. The main driver has been the declining value of the Turkish lira, which has led people to seek stablecoins and assets like Bitcoin as alternatives.

One Bitcoin was valued at about $3,400 in 2020, and as of the latest data, the same Bitcoin now exceeds $157,000 in Turkish lira terms, reflecting significant currency depreciation and Bitcoin Price growth.

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