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#Turkey Grants Watchdog Power To Freeze #Crypto Accounts in AML Push

Turkey is preparing legislation that would authorize its financial crime watchdog Masak to freeze cryptocurrency accounts as part of expanded Anti-Money Laundering enforcement powers. The proposed measures aim to combat illicit financial activity while aligning the country with international standards set by the Financial Action Task Force.

The bill would expand Masak's mandate to freeze both cryptocurrency and traditional bank accounts suspected of criminal use, according to Bloomberg reports citing people familiar with the matter. The legislation is expected to reach the Grand National Assembly, though officials provided no specific timeline for introduction.

If passed, Masak would gain authority to freeze or close accounts across payment systems, electronic money institutions, banks, and #cryptocurrency exchanges. The watchdog could also impose transaction limits or blacklist crypto wallets linked to criminal activity based on its investigations.

A primary target of the legislation involves curbing "rented accounts," where criminals pay individuals to use their accounts for illegal gambling or financial fraud schemes. This practice has become increasingly problematic for Turkish authorities monitoring suspicious transaction patterns.