Turkey to empower watchdog to freeze crypto accounts in AML crackdown: Report

Turkey's financial intelligence unit Masak will gain unprecedented authority to freeze cryptocurrency accounts under proposed anti-money laundering (AML) legislation, marking a significant regulatory shift in the country's digital asset landscape. The new powers align Turkey with Financial Action Task Force (FATF) international standards, potentially impacting Bitcoin, Ethereum, and other cryptocurrency holdings within Turkish exchanges and wallets.

This regulatory crackdown represents Turkey's commitment to combating illicit crypto activities while maintaining compliance with global AML frameworks. The legislation targets money laundering schemes that exploit blockchain technology and decentralized finance (DeFi) platforms, giving authorities enhanced surveillance capabilities over digital transactions.

The move could influence cryptocurrency market dynamics in Turkey, where crypto adoption has surged amid economic uncertainty and inflation concerns. Turkish investors heavily utilize Bitcoin and major altcoins as hedge instruments, making this regulatory development particularly significant for local trading volumes.

Market analysts suggest this AML enforcement mechanism may initially create volatility but could ultimately strengthen investor confidence through improved regulatory clarity. The legislation demonstrates Turkey's balanced approach to cryptocurrency regulation—maintaining innovation while preventing financial crimes across blockchain networks.