Turkey Expands Financial Watchdog’s Authority Over Crypto and Bank Accounts

Turkey is advancing legislation to grant its financial intelligence unit, Masak, unprecedented control over bank and cryptocurrency accounts tied to suspected criminal activity. The draft bill would enable the watchdog to freeze accounts, limit transactions, and blacklist crypto wallet addresses across banks, payment processors, and exchanges.

Market analysts warn these measures could escalate compliance burdens for centralized platforms, potentially driving users toward decentralized alternatives. However, transparent implementation may paradoxically accelerate institutional crypto adoption by legitimizing oversight frameworks.

The proposed powers mirror global trends in financial surveillance but risk altering Turkey's crypto landscape significantly. Platforms face operational challenges, while users may seek privacy-preserving alternatives like decentralized exchanges or privacy coins.