TLDRTurkey plans to grant MASAK the authority to freeze cryptocurrency accounts to fight money laundering and financial crimes.The proposed legislation will expand MASAK’s powers to include both crypto and traditional bank accounts.MASAK will be able to blacklist wallets linked to criminal activities and impose transaction limits on suspicious accounts.New regulations will require crypto exchanges to gather detailed information about transactions and their sources.The move aligns with the Financial Action Task Force’s recommendations to strengthen global anti-money laundering efforts.Turkey is preparing legislation that will grant its financial crime watchdog, MASAK, the authority to freeze cryptocurrency accounts. This measure is part of the country’s broader efforts to tackle money laundering and financial crimes. The new bill, if passed, could extend MASAK’s Anti-Money Laundering (AML) powers to both crypto and traditional bank accounts. The Turkish government aims to align with global standards set by the Financial Action Task Force (FATF).Expanding MASAK’s MandateThe proposed legislation would allow MASAK to freeze accounts suspected of illicit activity across various financial platforms. This includes payment systems, banks, cryptocurrency exchanges, and electronic money institutions. Under the new rules, MASAK would also be able to blacklist wallets linked to criminal activity. It could even impose transaction limits on suspicious accounts, helping prevent financial fraud and other crimes.The bill could have a significant impact on Turkey’s cryptocurrency ecosystem. MASAK would have the authority to act on accounts associated with activities such as illegal gambling or financial fraud. The new measures are expected to address the growing concerns over “rented accounts,” which criminals use for illicit purposes. These accounts often involve individuals being paid to facilitate illegal transactions.Turkey Introduces New Rules for Crypto ExchangesIn addition to granting MASAK more powers, the Turkish government is introducing new rules for cryptocurrency exchanges. The new regulations will require exchanges to gather more information on the source and purpose of crypto transactions. These measures will likely include limits on stablecoin transfers, which have become increasingly popular in Turkey.The Turkish government’s steps are part of an ongoing effort to ensure greater oversight in the cryptocurrency market. This move aligns with global efforts to mitigate the risks of money laundering and terrorist financing associated with cryptocurrencies. The regulations are expected to create a safer environment for investors while also reducing illegal activities related to digital assets.Turkey’s financial authorities, including the Capital Markets Board (CMB), have already begun taking action against unauthorized platforms. In July, the CMB blocked several platforms offering digital asset services without proper authorization. This action underscores the country’s commitment to regulating the cryptocurrency sector more closely and preventing its use for illicit activities.Cryptocurrency adoption in Turkey has experienced steady growth, particularly in the aftermath of the country’s ongoing economic crisis. The sharp depreciation of the Turkish lira has led many citizens to seek alternative stores of value. Bitcoin and stablecoins, which are pegged to the US dollar, have gained particular popularity among Turkish investors.In 2020, one Bitcoin was worth approximately 100,000 Turkish lira. Today, it has risen to over 4.6 million lira, driven both by Bitcoin’s appreciation and the lira’s rapid devaluation. The increasing use of cryptocurrencies as an alternative investment option reflects the country’s deepening financial struggles and growing demand for more secure financial solutions.The post Turkey to Strengthen AML Laws, Grant MASAK Authority Over Crypto Accounts appeared first on Blockonomi.