New regulations closely related to the cryptocurrency market are under development in Turkey. According to Bloomberg, the government is working on a draft law that would grant the Financial Crimes Investigation Board (MASAK) the authority to freeze bank and crypto accounts. The bill aims to strengthen the fight against money laundering and financial crimes while also maintaining Turkey's compliance with international financial standards.
MASAK will have authority over accounts on cryptocurrency exchanges
According to the draft, MASAK will not be limited to banks; it will also have the authority to close suspicious accounts, set transaction limits, or blacklist crypto wallets at electronic money institutions, payment systems, and cryptocurrency exchanges. This will allow the board to instantly stop suspicious fund movements and take on a more effective role in preventing the financing of illegal activities.
One of the areas the regulation focuses on is the recently increasing practice of "rental accounts." In this method, criminal organizations pay individuals and use their bank or crypto accounts for activities such as illegal betting and fraud. The new law aims to quickly identify and close such accounts.
The Financial Action Task Force (FATF), of which Turkey is a member, removed the country from its gray list in June 2024. The new bill is considered a step towards ensuring continued international compliance within this framework. The Ministry of Treasury and Finance is also reportedly working on regulations that will require crypto exchanges to collect more detailed information about user transactions and restrict stablecoin transfers.
From a crypto market perspective, these developments mean stricter oversight and compliance obligations. Millions of people in Turkey currently trade crypto assets. According to the Global Crypto Adoption Index published by Chainalysis, Turkey ranks 14th globally. The ongoing depreciation of the Turkish lira since 2018, in particular, has driven citizens to alternative investment and savings instruments. Dollar-pegged stablecoins and Bitcoin have become stores of value for many investors.
The figures are striking to illustrate the lira's depreciation. In 2020, one Bitcoin was worth approximately 100,000 TL, but today this figure has surpassed 4.6 million TL. This clearly demonstrates both the global appreciation of Bitcoin and the sharp decline of the lira over the years.
Consequently, the draft law appears poised to impose new rules on the crypto ecosystem in Turkey. Expanding the powers of the Financial Crimes Investigation Board (MASAK) could strengthen the state's grip on money laundering and illicit financial activities while also creating a stricter oversight environment for investors. While crypto adoption continues to grow rapidly, users will need to adapt to stricter regulations going forward.
