New Turkish Bill Could Give Regulators Power to Freeze Bank and Crypto Accounts Linked to Crime

Turkey Prepares to Grant Masak Power to Freeze Cryptocurrency Accounts

Turkey is moving to tighten oversight of its cryptocurrency sector, with proposed legislation that could give the country’s financial crime watchdog, Masak, the authority to freeze accounts suspected of illegal activity.

The bill, according to media sources, would expand Masak’s anti-money laundering (AML) powers to cover both cryptocurrency and traditional bank accounts, a step aligning the country with international standards set by the Financial Action Task Force (FATF).

Masak Could Target Rented Accounts and Criminal Wallets

The legislation is designed to tackle so-called “rented accounts,” where criminals pay individuals to use their accounts for activities like financial fraud or illegal gambling.

Under the proposed rules, Masak would be able to freeze or close accounts across banks, payment systems, electronic money institutions, and cryptocurrency exchanges.

Authorities could also blacklist wallets associated with illicit activity and impose transaction limits on suspicious accounts.

New Rules Aim to Strengthen Crypto Oversight

Alongside Masak’s expanded mandate, Turkey’s Finance Ministry is preparing additional rules for crypto exchanges.

These would require exchanges to collect detailed information on the source and purpose of transactions and may include limits on stablecoin transfers, which have gained popularity amid the lira’s depreciation.

Earlier this year, the Capital Markets Board (CMB) restricted access to several “unauthorised” digital asset platforms, including PancakeSwap, highlighting the government’s growing focus on crypto regulation.

Rising Cryptocurrency Use Driven by Lira Crisis

Cryptocurrency adoption in Turkey has accelerated, partly driven by economic instability.

The Turkish lira has been in steep decline since 2018, facing high inflation, rising borrowing costs, and widespread loan defaults.

Many citizens have turned to dollar-pegged stablecoins and Bitcoin as alternative stores of value.

To illustrate, one Bitcoin traded for about 100,000 lira in 2020, a figure that now exceeds 4.6 million lira, reflecting both Bitcoin’s rise and the lira’s ongoing erosion.

Legislation Reflects Global Anti-Money Laundering Standards

If passed, the bill would give Masak powers similar to those recommended by FATF, the intergovernmental body focused on combating money laundering and terrorist financing.

Turkey’s move mirrors efforts in other countries, such as Kazakhstan and Russia, to regulate digital assets more closely while maintaining legal trading and investment opportunities.

The proposed legislation has not yet been introduced to the Grand National Assembly, and no timeline has been announced.

However, the measures represent a notable step in Turkey’s effort to regulate cryptocurrency, reduce illicit activity, and bring domestic practices in line with global financial standards.