Turkey is preparing a law that will allow the freezing of crypto accounts as part of its fight against money laundering. Authorities are developing an initiative to expand the powers of the financial regulator Masak. The new document will give it the right to block cryptocurrency accounts suspected of illegal operations and will be part of efforts to bring regulations in line with international FATF standards. This step is seen as another stage in strengthening control over the rapidly growing digital asset market.
What powers will Masak receive
Turkey ranks 14th in the global cryptocurrency adoption index.
The document provides for the possibility of blocking and closing any accounts suspected of being used for illegal activities — from traditional bank accounts to wallets on crypto exchanges. The regulator will also have the right to set transaction limits and blacklist wallets linked to money laundering, illegal betting, or financial fraud.
Special attention is given to so-called ‘rented accounts’ — schemes in which criminal groups pay people to use their details for shadow transfers. Such practices are gaining popularity amid the growth of illegal online gambling and fraudulent operations.
Regulation reaches a new level
Bitcoin in terms of Turkish lira.
Although cryptocurrency trading in Turkey remains legal and investment income is not yet taxed, the authorities are steadily tightening oversight. The Ministry of Finance is preparing rules requiring crypto exchanges to collect more detailed information about the origin of funds and the purpose of transactions. The draft also includes restrictions on stablecoin transfers, which have become especially popular in the country.
Back in the summer, another key regulator — the Capital Markets Board — blocked access to a number of platforms providing services without a license. Even major decentralized services were among those banned. This move signaled that the authorities do not intend to ignore either centralized or decentralized models of working with digital assets.
Why cryptocurrencies are growing in popularity
Despite pressure from the state, cryptocurrencies continue to strengthen their position among the population. According to Chainalysis, Turkey consistently ranks among the top countries in the world in terms of crypto adoption.
The main reason for the interest is the depreciation of the Turkish lira. Since 2018, the national currency has lost a significant part of its value due to high inflation, rising rates, and a debt crisis. In such conditions, many citizens have begun to consider stablecoins and bitcoin as alternative tools for preserving capital.
For comparison: back in 2020, one bitcoin cost about 100,000 lira. Today its price exceeds 4.6 million lira. This clearly reflects not only the growth in the value of the asset itself but also the sharp depreciation of the national currency.
Risks for investors and exchanges
If the new law is adopted, Masak will receive powers comparable to traditional financial supervisory authorities. For investors, this means that any suspicious activity could lead to an account freeze, even if it is a cryptocurrency wallet.
For exchanges, the consequences will be no less serious: they will have to implement new transaction monitoring systems and report to the regulator on every suspicious transfer. This will increase operating costs but at the same time boost trust from international partners, considering FATF requirements.
What next?
The bill is still in preparation and must be submitted to parliament, but it is already clear that it will be a turning point for the Turkish cryptocurrency market. Against the backdrop of the inflation crisis, the population is actively seeking protection in digital assets, but the state seeks to bring these flows under strict control.
If the document is adopted, Turkey will become one of the few countries where the regulator can directly freeze crypto accounts and restrict operations with digital assets. This will create a new reality: on the one hand — increased transparency, on the other — increased pressure on users who use cryptocurrencies to preserve savings in an economic crisis.
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