Turkey is preparing important changes in its anti-money laundering (AML) laws that would allow its financial crime agency to freeze cryptocurrency accounts, along with bank accounts. The plan aims to strengthen oversight, align with international standards, and clamp down on illicit finance.
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What’s Being Proposed?

Under the draft legislation:

MASAK, Turkey’s financial crime watchdog, would gain authority to freeze or restrict access not only to traditional bank accounts but also to crypto wallets and exchange accounts suspected of illicit activity.
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The law would permit MASAK to close accounts, impose transaction limits, blacklist addresses, and block or delay withdrawals in certain cases.
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Crypto service providers would face stricter rules: they would need to collect detailed user data, especially for transactions over 15,000 Turkish lira (≈ USD 360), and include extended transaction notes for transfers.
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Withdrawal delays would be introduced: standard withdrawals might take 48 hours, and first-time withdrawals from new accounts could face 72-hour delays.
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Platforms that comply with rules like the “Travel Rule” may be allowed higher transfer limits; noncompliant ones risk penalties, license denial, or shutdown.
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These reforms are reportedly part of Turkey’s 11th Judicial Package, a legislative set of rules expected to be tabled in Parliament.
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Why Turkey Is Doing This

There are several key motivations behind this stronger crackdown:

Aligning with international standards
The changes follow criteria set by the Financial Action Task Force (FATF), a global body that sets rules for preventing money laundering and terrorist financing. Turkey’s moves will help it stay in good standing internationally.
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Targeting “rented accounts” and hidden networks
Authorities are especially concerned about accounts rented out by individuals who allow criminals to use them for fraud, money laundering, or illegal betting. These rented accounts make tracking illicit funds harder.
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Protecting Turkey’s financial system and reputation
With rapid growth in crypto adoption and some earlier exchange scandals (e.g. Thodex), regulators aim to reduce abuse and risk.
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Preventing fraud, terrorism financing, and money laundering
These rules give the state more tools to act quickly when suspicious transactions are detected.

Potential Impacts & Concerns

The proposed crackdown is likely to generate both benefits and challenges.

Advantages

Stronger oversight: Regulators would be better equipped to block criminal activity and freeze assets sooner.

Greater trust: Investors and users may feel safer if illicit behavior is curbed.

Better international standing: Meeting FATF expectations helps Turkey avoid being placed back on “grey lists” or facing financial sanctions.

Risks and Criticisms

Overreach and privacy worries: Freezing accounts—even crypto ones—raises fears of overcontrol and whether innocent users might be caught up.

Strain on innovation: Smaller crypto firms may struggle with stricter rules, costs of compliance, or new capital requirements.
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Unclear implementation: The law is still in draft, so how well the rules work in practice—guarding against abuse or error—is uncertain.

Possible firm departures: Some exchanges might limit operations or exit Turkey if compliance becomes too heavy. Already, some firms have adjusted to changing regulatory signals.
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What’s Next?

The bill is expected to be introduced in Turkey’s Parliament (Grand National Assembly) in the near future.
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Stakeholders, especially crypto firms and exchanges, will likely lobby and negotiate the rules.

Implementation, oversight, appeals, and legal safeguards will be key to how fair and effective the system becomes.

Market participants should watch for updates and adjust compliance, operations, or strategies to stay aligned.

Conclusion

Turkey’s move to empower its financial crime watchdog (MASAK) to freeze crypto accounts marks a significant turning point in its regulation of digital assets. Designed to fight money laundering, account rental, and illicit funds, the plan aims to strengthen control while aligning with global AML expectations. However, success will depend on balancing enforcement with fairness, protecting users’ rights, and not stifling innovation.