New bill aligns with FATF standards amid rising digital asset adoption in Turkey
Turkey is preparing to introduce new legislation that would empower its financial crime watchdog, Masak, to freeze cryptocurrency accounts as part of a wider anti-money laundering (AML) initiative. The move comes as regulators seek to address concerns over illicit activity in the rapidly growing digital asset market.
Masak’s expanded authority
According to sources familiar with the matter, the draft law would give Masak the ability to freeze or close both crypto and traditional bank accounts suspected of illegal use. This expansion of powers is designed to align with recommendations from the Financial Action Task Force (FATF), which sets global AML and counter-terrorist financing standards.
The proposed measures would also enable authorities to blacklist wallets linked to crime, restrict transactions, and impose limits on suspicious transfers, targeting activities such as illegal gambling and fraud conducted through so-called “rented accounts.”
Government’s tightening oversight
While cryptocurrency trading remains legal in Turkey, and gains are not yet taxed, regulators have been steadily moving toward tighter control. Earlier this year, the Capital Markets Board (CMB) blocked access to several unauthorized digital asset platforms, underscoring growing pressure on the industry.
A financial law expert in Istanbul noted that “the aim is to bring crypto markets under the same compliance standards as traditional finance, ensuring transparency and accountability.”
Crypto adoption driven by lira decline
Despite stricter oversight, crypto adoption in Turkey ranks among the highest globally, with the country placed 14th in the latest Chainalysis Global Crypto Adoption Index. One of the main drivers has been the sharp depreciation of the Turkish lira, which has lost significant value since 2018 amid soaring inflation and economic uncertainty.
To highlight the shift, one Bitcoin, worth around 100,000 lira in 2020, now exceeds 4.6 million lira, reflecting both the currency’s depreciation and Bitcoin’s long-term appreciation.
An Ankara-based analyst observed that “many citizens see stablecoins and Bitcoin not just as investments, but as protection against currency erosion.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.