Turkey is preparing legislation that would authorize its financial crime watchdog Masak to freeze cryptocurrency accounts as part of expanded Anti-Money Laundering enforcement powers. The proposed measures aim to combat illicit financial activity while aligning the country with international standards set by the Financial Action Task Force.
The bill would expand Masak’s mandate to freeze both cryptocurrency and traditional bank accounts suspected of criminal use, according to Bloomberg reports citing people familiar with the matter. The legislation is expected to reach the Grand National Assembly, though officials provided no specific timeline for introduction.
If passed, Masak would gain authority to freeze or close accounts across payment systems, electronic money institutions, banks, and cryptocurrency exchanges. The watchdog could also impose transaction limits or blacklist crypto wallets linked to criminal activity based on its investigations.
A primary target of the legislation involves curbing “rented accounts,” where criminals pay individuals to use their accounts for illegal gambling or financial fraud schemes. This practice has become increasingly problematic for Turkish authorities monitoring suspicious transaction patterns.
Cryptocurrency trading and investment remain legal in Turkey, with profits not yet subject to taxation as of October. However, the government has steadily tightened oversight of the sector through various regulatory initiatives and enforcement actions.
The Finance Ministry is preparing additional rules requiring crypto exchanges to collect detailed information about the source and purpose of transactions. These regulations would also introduce limits on stablecoin transfers, adding another layer of compliance requirements for platforms operating in Turkey.
In July, the Capital Markets Board blocked access to several platforms offering unauthorized digital asset services. The regulatory action targeted PancakeSwap and other popular decentralized exchanges, demonstrating the authorities’ willingness to restrict access to non-compliant platforms.
The measures align with recommendations from the Financial Action Task Force, an intergovernmental body that sets global standards for combating money laundering and terrorist financing. Turkey’s proposed legislation reflects broader international efforts to bring cryptocurrency activity under existing financial crime prevention frameworks.
Cryptocurrency adoption in Turkey has climbed steadily despite increasing regulatory scrutiny. The latest Chainalysis Global Crypto Adoption Index, released in September, ranks Turkey 14th globally, supported by growth in centralized retail platforms and institutional crypto services.
The sharp depreciation of the Turkish lira has driven much of this adoption. The currency has been in steady decline since 2018 amid a prolonged financial crisis marked by high inflation, rising borrowing costs, and loan defaults. Many citizens have turned to dollar‑pegged stablecoins and $BTC as alternative stores of value.