Türkiye pushes to grant financial authorities the power to freeze crypto accounts

Uk Jin

Summary

The Türkiye government said it is pursuing a bill to grant the Financial Crimes Investigation Board (MASAK) the authority to freeze virtual asset accounts.
The bill, if passed by parliament, would allow immediate freezing and closure of accounts suspected of illegal activity, registration of accounts involved in crimes on a blacklist, and the imposition of transaction limits.
It said the bill includes mandatory local registration for all virtual asset service providers and strengthened regulations such as restrictions on stablecoin transfers, and that this is a measure to comply with FATF standards.

It has emerged that the Türkiye government is preparing a bill to grant the Financial Crimes Investigation Board (MASAK) the authority to directly freeze virtual asset (cryptocurrency) accounts.

On the 29th (local time), according to Cryptopolitan, the Türkiye government is pursuing a bill to expand MASAK's Anti-Money Laundering (AML) supervisory jurisdiction to virtual assets. If the bill passes parliament, authorities will be able to immediately freeze or close accounts suspected of illegal activity at banks, electronic payment providers, and virtual asset exchanges, as well as blacklist wallets involved in crime and impose transaction limits.

The government is particularly focused on cracking down on 'rented accounts' used for illegal gambling, fraud, and the like. All virtual asset service providers will be required to register locally, and measures such as verifying the source of funds and restricting stablecoin transfers are also expected to be strengthened.

This measure is intended to meet FATF (Financial Action Task Force) standards.