Turkey Moves to Expand Watchdog Powers in Crypto AML Crackdown

Key Insights:

• Turkey prepares a bill to let Masak freeze crypto and bank accounts.

• Masak will also have the power to set transaction limits and blacklist wallets linked to criminal behavior.

• The Ministry of Finance is working on new rules that would require crypto platforms to collect more detailed user information

Turkey is preparing to introduce legislation that would grant the country’s financial crime watchdog, Masak, the authority to freeze cryptocurrency accounts suspected of illegal activity.

According to a Bloomberg report citing sources familiar with the matter, the proposal is part of a broader effort to tighten anti-money laundering (AML) enforcement and bring Turkey’s financial regulations in line with international standards set by the Financial Action Task Force (FATF).

If passed, the new bill would allow Masak to freeze or close accounts tied to illicit activities across a wide range of platforms from traditional banks and e-money providers to crypto exchanges.

The bill is also expected to give Masak the power to set transaction limits and blacklist wallets linked to criminal behavior. One key focus of the draft law is the crackdown on "rented accounts," a method used by criminals who pay individuals to temporarily access their accounts for fraud, illegal gambling, and money laundering.

Though no timeline for the legislation's introduction to the Grand National Assembly has been given, the move aligns with Turkey’s recent push to strengthen its digital asset oversight.

Turkey Tightens Crypto Oversight Amid Rising Adoption

Despite cryptocurrency trading remaining legal in Turkey, the government has been increasing regulatory pressure in recent months.

The Ministry of Finance is working on new rules that would require crypto platforms to collect more detailed user information, including the source and purpose of each transaction. It also aims to introduce limits on stablecoin transfers and improve traceability of funds across digital asset networks.

In July, Turkey’s Capital Markets Board (CMB) blocked access to several platforms offering unauthorized digital asset services, including the decentralized exchange PancakeSwap.

These developments come as Turkey experiences rapid growth in crypto adoption, driven by high inflation, a weakening national currency, and increased retail interest. According to the September Global Crypto Adoption Index by Chainalysis, Turkey currently ranks 14th globally.

The proposed legislation is seen as a step toward balancing innovation with financial stability, as Turkey aims to meet FATF compliance and maintain access to global financial systems.