Turkey Moves to Expand Watchdog Powers Over Crypto, Bank Accounts

Turkey's financial watchdog Masak is set to receive expanded regulatory powers over cryptocurrency exchanges and traditional bank accounts, marking a significant shift in the country's digital asset oversight framework. This regulatory expansion could substantially impact Turkey's thriving cryptocurrency market, where Bitcoin and blockchain adoption has surged amid economic uncertainty.

Industry experts anticipate the enhanced Masak authority will increase compliance costs for local cryptocurrency exchanges, potentially forcing smaller platforms out of the market. The stricter regulatory environment may drive Turkish crypto users toward decentralized finance (DeFi) platforms and peer-to-peer trading alternatives to avoid centralized oversight.

Turkey's move reflects a global trend of governments tightening cryptocurrency regulations while balancing innovation with consumer protection. The expanded watchdog powers will likely affect Bitcoin trading volumes and altcoin market dynamics within Turkey's borders. Cryptocurrency exchanges operating in Turkey must now prepare for heightened regulatory scrutiny and potentially costly compliance requirements.

This regulatory development could influence broader blockchain adoption in Turkey and may impact cryptocurrency price movements in regional markets as traders adjust to the evolving regulatory landscape.