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Turkey Plans Law Letting Watchdog Freeze Crypto, Bank Accounts

Turkey Proposes Law Granting Financial Crimes Unit Power to Freeze Bank and Crypto Accounts in Crackdown on Illegal Gambling and Fraud

  • Turkey is proposing a law to give its financial intelligence unit expanded powers to freeze both bank and crypto accounts linked to suspected crime.
  • The draft bill would let the authority limit transactions, freeze mobile banking access, and blacklist crypto wallet addresses.
  • The legislation focuses on stopping “rented accounts” often used for illegal betting and fraud.
  • Experts say the plan could increase compliance costs for crypto businesses and potentially push users toward decentralized exchanges.
  • The law’s transparency could help attract more institutional investors if implemented clearly and fairly.

Lawmakers in Turkey are preparing a bill that would allow the country’s main financial crimes unit, Masak, to freeze bank and cryptocurrency accounts suspected of being used for illegal activities. This proposal is scheduled for debate in parliament as part of the 11th Judicial Package when sessions resume.

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Under the draft law, Masak would have powers to shut down accounts, set transaction limits, freeze access to mobile banking, and blacklist cryptocurrency wallet addresses at banks, payment services, and crypto exchanges. The main target of the legislation is accounts used for illegal gambling and fraud, especially those referred to as “rented accounts” where individuals let criminals use their banking details.

A recent report by Bloomberg explains that these changes follow Turkey’s removal from the Financial Action Task Force grey list in June 2024, after years of concern about weak oversight in sectors like banking and real estate.

According to Gokay Aktasin of CoinTR, “People are looking for a way out from economics problems,” noting that renting accounts for illegal business goes beyond just online casinos. Nic Puckrin of Coin Bureau added, “This proposal is a move toward a Big Brother state, thinly veiled as compliance.” He also commented that such powers conflict with the idea of cryptocurrency, which promotes control and freedom for users.

Lionel Iruk, advisor to Nav Markets, said the uncertainty about when accounts could be frozen “could drive more activity to decentralized or offshore platforms.” However, he also believes that if the new rule is applied transparently, it could attract more institutional investors.

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The proposed measures may be revised or amended during the legislative process before they are finalized.

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