The Turkish government is reportedly preparing new legislation that could give the country’s financial crime watchdog, Masak, the authority to freeze cryptocurrency accounts.
This move is part of a broader initiative aimed at curbing money laundering and financial crime, signaling heightened regulatory scrutiny of the crypto sector.
According to Bloomberg’s report, the Turkish government is working on legislation that would allow Masak to freeze accounts suspected of illicit activity. If the bill is passed, Masak would gain authority not only over traditional bank accounts but also cryptocurrency exchanges, electronic money institutions, and payment systems. This would align with the global standards set by the Financial Action Task Force (FATF), an intergovernmental body that focuses on anti-money laundering (AML) and combating the financing of terrorism.
Notably, the bill aims to target “rented accounts,” a growing concern where criminals pay individuals to use their accounts for illegal activities like fraud or gambling. The ability to freeze or close these accounts could help curb such operations and strengthen Turkey’s efforts to tackle financial crime.
The legislation would also give Masak the power to impose transaction limits on accounts linked to criminal activity. Furthermore, the watchdog would be able to blacklist crypto wallets connected to illicit uses. Although cryptocurrency trading is legal in Turkey, and profits are not currently taxed, the government has been increasing its focus on tightening oversight.
As of now, the government has not provided a specific timeline for when the bill will be introduced to the Grand National Assembly. However, the proposals indicate a significant shift in Turkey’s approach to cryptocurrency regulation, particularly concerning its role in combating financial crime.
The planned changes to Masak’s powers are in line with recommendations from the FATF, which aims to promote transparency and reduce the use of digital assets for illegal activities.
Turkey’s decision to expand Masak’s mandate reflects a growing global trend where countries are considering more stringent regulatory measures to combat financial crimes involving cryptocurrencies.
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