Turkey Proposes Expanded Powers for Financial Watchdog to Freeze Accounts, Blacklist Crypto Wallets

Alignment with Global Standards

The Turkish government is reportedly preparing to grant its financial crime watchdog, the Financial Crimes Investigation Board (MASAK), new authority to freeze or restrict access to both bank and cryptocurrency accounts. These sweeping new measures, intended to aid the watchdog in its fight against money laundering and financial crime, are set to be introduced via a parliamentary bill, according to a Bloomberg report.

The proposed powers are said to align with criteria set by the Financial Action Task Force (FATF), which removed Turkey from its ‘grey-list’ in June 2024. The FATF noted at the time that Turkey had improved its mechanisms for tackling money laundering and terrorist financing. By empowering MASAK to go after illicit financial flows in both traditional and digital finance, Turkish authorities further cement the country’s determination to stay off the grey-list.

This follows earlier regulatory action this year, when Turkey unveiled regulations that granted the Capital Markets Board (CMB) full oversight of cryptocurrency platforms, outlining mandatory obligations for crypto asset service providers.

The Bloomberg report also indicated that the new regulations will authorize MASAK to blacklist cryptocurrency addresses linked to crime and impose transaction limits. Anonymous sources quoted in the report state that the bill is primarily aimed at tackling so-called “rented accounts.” Authorities believe criminals are paying or renting accounts from their rightful owners to perpetrate fraud or illegal betting.

The proposed measures are slated for inclusion in the 11th Judicial Package, which is expected to be formally submitted to parliament at the start of the new legislative year. However, the Turkish Finance Ministry has not yet commented on the issue. The regulation remains subject to revision—either prior to its submission or during parliamentary deliberations—and there is no guarantee it will be enacted in its current form.