From Turkey to MASAK Crypto Account Freezing Authority!

With the recent increase in interest in cryptocurrencies, news of a new regulation in Turkey has come to the attention of investors. A draft law that will expand the powers of the Financial Crimes Investigation Board (MASAK) will be submitted to the Parliament within the next legislative year. With this regulation, MASAK will have the authority to freeze bank and crypto accounts.

According to information reported by Bloomberg, if the regulation is implemented, MASAK will gain the authority to close suspicious accounts, set transaction limits, and temporarily suspend mobile banking, not only in banks but also in payment institutions, electronic money companies, and crypto platforms. In this context, the aim is to combat the "rented account" method frequently used in illegal betting and fraud. To prevent criminals from making illegal money transfers by renting others' bank or crypto accounts, these accounts are planned to be quickly identified and intervened.

Turkey had also exited the grey list in June 2024 as a member of the Financial Action Task Force (FATF). The new regulation is seen as an important step towards continued compliance with international standards. However, it is stated that the regulation is still in the draft stage and may change during the parliamentary process.

With MASAK's new powers, suspicious fund movements in the crypto ecosystem can be stopped instantly. This situation will mean stricter supervision and new compliance obligations for crypto exchanges operating in Turkey. Investors should consider that volatility in the crypto market may increase following these developments and adjust their positions accordingly.