Turkey Moves to Curb Fraud Through Stricter Crypto and Bank Rules

Turkey plans to expand Masak’s powers, freezing bank and crypto accounts, targeting rented accounts, and tightening crypto and bank rules.

Turkey is preparing to expand the powers of its Financial Crimes Investigation Board (Masak) to freeze and restrict access to bank and crypto accounts, part of a broader effort to combat money laundering and financial crime. The government plans to introduce the proposed measures in the 11th judicial reform package. However, it has not announced a specific timeline.

New Bill Targets Rented Accounts and Financial Crime

The legislation is primarily targeting the problem of “rented accounts,” when criminals pay people to use their bank or crypto accounts to commit illegal actions such as fraud or gambling. By giving power to Masak to freeze or close such accounts of Turkey aims to combat such deals and muscular activities to curb financial crime. The bill would also enable Masak to place transaction limits on the accounts that are linked to illicit activities, and blacklist crypto wallets whose associated with criminal use.

Masak is the central organization in Turkey for combating money laundering, outlining and conducting reporting of suspicious transactions, referring cases to prosecutors, and cooperating in the framework of international compliance bodies. Expanding its powers to include supervision of crypto accounts is a reflection of the government’s growing attention towards regulating digital assets without reducing the opportunities for traders and investors to trade and invest.

Crypto Oversight Tightens Amid Legal Trading

Although trading in cryptocurrency is currently legal in Turkey and the government isn’t taxing profits yet, the government has been moving to increase regulatory control. Reports claim the Finance Ministry is considering new crypto rules that will require crypto exchanges to gather detailed information on the source and purpose of transactions. Limits on the transfer of stablecoins are also being discussed to reduce any potential misuse in illicit financial activities.

The bill, if passed by the Grand National Assembly, would give Masak influence over banks, the payment system, electronic money institutions, and cryptocurrency exchanges. Masak can freeze or close accounts suspected of illegal activities. Additionally, it can set transaction limits and blacklist crypto wallets.

Therefore, the agency strengthens oversight of financial and digital asset transactions. Officials anticipate that the legislation will result in a more secure and transparent financial landscape, while bringing the regulations around cryptocurrencies for Turkey up to international standards.

Experts point out that the measures could go a long way in mitigating the risks posed in rented accounts, which is becoming a growing concern in traditional banking alongside the crypto market. Turkey is targeting rented accounts and improving its monitoring capabilities. As a result, authorities can enforce stricter rules on digital asset transactions. However, the government ensures that legal cryptocurrency activities remain unaffected.

The proposed expansion of Masak’s role highlights the government’s resolve to establish a balance between innovation in the financial sector and serious guards against illicit activity. As the rise in crypto adoption in Turkey is evident, increased supervision is likely to bring more investor confidence while reducing the potential for improper use in scams, gambling, and other financial crimes.