Turkey Expands Financial Watchdog Powers to Target Crypto & Bank Accounts

The Turkish government is drafting legislation that would grant its financial crime watchdog, Masak, unprecedented authority to freeze and restrict access to both bank and cryptocurrency accounts. According to Bloomberg reports, the bill specifically targets money laundering, fraud, and the growing problem of “rented” or “mule” accounts—bank accounts that criminals pay individuals to use for illegal activities such as illegal gambling, financial fraud, and scams. This legislative push comes shortly after Turkey’s removal from the Financial Action Task Force’s (FATF) “grey list” in June 2024, indicating the country’s commitment to meeting international anti-money laundering standards.

If passed, the legislation would empower Masak to close bank accounts outright, impose transaction limits, suspend mobile banking services, and blacklist cryptocurrency addresses deemed linked to criminal activity. The focus on cryptocurrency regulation is particularly significant given that crypto trading remains legal in Turkey, though the government has been progressively tightening controls. This trend was evident in July when Turkish financial regulators blocked access to several crypto platforms offering “unauthorized” digital asset services, including the PancakeSwap decentralized exchange.

Turkey’s proposed measures are part of a broader international trend of governments implementing aggressive financial surveillance and control mechanisms. In November, Indian authorities froze 450,000 mule accounts suspected of links to money laundering and cyber fraud. Similarly, Nigeria froze hundreds of bank accounts in April over suspicions of “suspicious forex flows,” while Ethiopian authorities have recently targeted accounts linked to alleged illegal foreign exchange activities.

The crackdown has been particularly dramatic in Asia, where banks in Thailand and Vietnam have been freezing accounts en masse—often catching innocent citizens in the dragnet. Thailand has frozen as many as 3 million bank accounts this year alone, many belonging to ordinary citizens and businesses, as the country grapples with a scam call center epidemic. The Bank of Thailand implemented these freezes overnight while simultaneously capping daily transfers between $1,300 and $5,500 to combat financial scams.

Vietnam followed suit in early September by freezing 86 million bank accounts for noncompliance with new biometric requirements, while Singapore recently empowered police to freeze bank accounts as part of its own scam crackdown. These measures highlight a global shift toward preemptive financial controls, often implemented with sweeping authority that affects legitimate account holders alongside suspected criminals.

The specific inclusion of cryptocurrency addresses in Turkey’s proposed legislation represents a significant escalation in the global regulatory approach to digital assets. By enabling Masak to blacklist crypto addresses, the government is attempting to extend its financial surveillance capabilities into the decentralized finance space. This move comes despite Thailand’s earlier—and disputed—claims that cryptocurrency was responsible for its abnormally strong currency, even though crypto has been outlawed for payments in the Kingdom and trade volumes remain minimal.

The growing trend of government-imposed transaction limits, account freezes, and banking restrictions raises fundamental questions about financial autonomy and privacy. As one Twitter user noted regarding Thailand’s crackdown: “You can’t freeze bitcoin.” This statement underscores the inherent tension between government efforts to combat financial crime and the preservation of individual financial sovereignty. The global pattern suggests that financial surveillance is becoming increasingly normalized, with governments worldwide adopting similar tactics despite differing economic circumstances and regulatory frameworks.