Turkey Strengthens Crypto Oversight to Combat Fraud and Crime

Turkey's 2025 crypto regulation expands MASAK's authority to freeze accounts linked to money laundering, enhancing scrutiny over BTC, ETH, and other cryptocurrencies. This legislative shift stresses compliance, impacting transaction sizes above 15,000 lira.

The expansion affects vast sections of the cryptocurrency industry, with implications for both domestic exchanges and compliance protocols. Surveillance aims to curb illicit financial activities without banning legal trading.

Turkey's new oversight mandates its Financial Crimes Investigation Board (MASAK) with the ability to freeze suspected cryptocurrency accounts. MASAK’s actions aim straight at serious financial crime deterrence. A representative from MASAK states, "The Turkish government is drafting legislation that would allow its financial crime watchdog, MASAK, to freeze cryptocurrency accounts, part of efforts to combat money laundering and financial fraud."

Cryptocurrency exchanges in Turkey, such as Binance TR and Paribu, are already implementing stricter compliance measures. The Central Bank is set to restrict crypto for payments further.

The market impact involves notable surveillance on assets, including BTC and ETH, affecting transaction handling and KYC compliance. Industries dependent on crypto must adapt to rigorous checks, particularly on transactions above certain thresholds.

Historically, similar regulation in April 2021 affected local exchange volumes but not global prices. DeFi protocols remain operational, although their accessibility decreases under Turkish regulation.

Potential outcomes include heightened regulatory scrutiny and decreased DeFi accessibility. Stricter compliance may erode exchange retail flows but strengthens systemic security. These measures mark another chapter in Turkey's ongoing quest against crypto misuse.