Turkey Plans Law to Freeze Crypto Accounts

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  Turkey drafts legislation targeting crypto-related AML risks
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  Masak to gain authority to freeze digital and fiat accounts
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  Crackdown aims to align with global regulatory standards

Turkey Tightens Grip on Crypto in AML Push

Turkey is preparing to introduce new legislation that would allow its financial intelligence unit, Masak, to freeze both crypto and traditional bank accounts as part of a broader anti-money laundering (AML) crackdown. The move signals the country’s intention to bring its regulatory framework in line with international standards amid rising crypto adoption.

Masak (Financial Crimes Investigation Board) currently lacks direct authority to take immediate action against accounts suspected of facilitating illicit activities. With the proposed law, that’s about to change.

The Turkish government says the new powers are part of a national effort to combat terrorism financing, money laundering, and tax evasion—especially as crypto continues to play a larger role in the country’s financial system.

Crypto Sector Under Growing Scrutiny

The proposed legislation arrives as crypto usage surges in Turkey, driven by inflation, a weakening lira, and a tech-savvy population seeking alternatives to traditional finance. However, the rapid growth has also raised concerns about fraud, unregulated exchanges, and cross‑border capital flows.

By expanding Masak’s authority, Turkish regulators aim to increase oversight on both centralized exchanges and peer‑to‑peer transactions, ensuring that suspicious accounts can be flagged and frozen quickly.

This legislative push echoes similar efforts in other countries, including the EU’s MiCA framework and the FATF’s travel rule recommendations.

Balancing Control and Innovation

While the crackdown is framed around security, some critics argue that overregulation could stifle innovation and limit access to decentralized finance tools. Turkish crypto advocates are urging the government to pursue a balanced approach—one that enforces AML standards without discouraging blockchain development and investment.

For now, all eyes are on the final wording of the bill and how it may affect both users and crypto businesses operating within Turkey’s borders.