Turkey preps law granting Masak freeze powers over banks, crypto
Turkey is drafting legislation that would grant its financial crime watchdog Masak expanded powers to freeze and restrict access to bank and cryptocurrency accounts suspected of illicit activity.
The bill will be submitted to parliament in the new legislative year as part of the 11th Judicial Package, according to people familiar with the plan. If passed, Masak would be able to close accounts at banks, payment firms, e-money institutions, and crypto platforms.
The proposed powers include imposing transaction limits, suspending mobile banking access, and blacklisting cryptocurrency addresses linked to financial crime. The measures target "rented" accounts, where individuals are paid to allow criminals to use their accounts for illegal betting and fraud.
The regulation aligns with criteria set by the Financial Action Task Force, which removed Turkey from its "grey list" in June 2024 after progress in combating money laundering and terrorism financing.
Masak currently collects and analyzes suspicious transaction reports and refers cases to prosecutors. Under the proposed law, its authority would expand significantly, making it a central enforcement body against financial crime involving both fiat and digital assets.
The Treasury and Finance Ministry declined to comment on the bill. The proposal serves as a part for Ankara's intent to strengthen oversight of crypto transactions in line with global compliance standards.
Turkey has taken several regulatory actions toward cryptocurrency in recent years. The country banned the use of crypto for payments in 2021 but has not prohibited crypto trading or ownership.
The new powers would allow Masak to act directly without waiting for court orders in cases involving suspected financial crimes. Account holders would have appeal mechanisms to challenge freezing decisions through administrative and judicial processes.
Parliament's legislative calendar typically begins in October following the summer recess. The 11th Judicial Package includes multiple provisions beyond the Masak authority expansion.
Turkish crypto exchanges would be required to comply with Masak's directives under the proposed framework. The legislation would apply to both domestic and foreign crypto platforms serving Turkish users.
The bill may undergo changes during parliamentary review before final passage. Committee hearings will likely include testimony from banking sector representatives and crypto industry stakeholders.
Turkey's Financial Crimes Investigation Board, known by its Turkish acronym Masak, operates under the Ministry of Treasury and Finance. The agency has expanded its focus on cryptocurrency-related investigations in recent years.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
Recommended