Ankara prepares an unprecedented crackdown on digital finance: a proposal in the works, also reported by Bloomberg, would expand the powers of MASAK, the anti-money laundering unit, providing for the immediate freezing of bank accounts and crypto wallets on exchanges. The text, not yet made public, is expected to reach Parliament in the coming weeks, with measures aimed at combating money laundering and illicit financing.
According to sources close to the dossier, the package aims to align Turkey with international standards of the FATF, accelerating precautionary blocks and strengthening controls on identity and transactions. To date, there are no official statements from MASAK on the content of the draft. In this context, the operational scope might be defined with greater clarity only close to the parliamentary process.
According to the data collected by our editorial team, based on interviews conducted between July and September 2025 with compliance officers from banks and exchanges active in the region, many platforms have already started updating their KYC policies and monitoring systems. MASAK, active since 1996, operates under the Turkish Ministry of Treasury and Finance; industry analysts estimate that the complete adjustment for small VASPs may generally take 3–6 months, while large operators tend to implement changes in 4–8 weeks.
What the proposal entails: more powers to MASAK and “flash” blocks
- Preventive freezing of bank accounts and accounts on cryptocurrency exchanges, applicable upon the occurrence of reports or investigations in the AML field.
- Block orders sent to intermediaries with accelerated timing and a defined duration of the measure, renewable upon validation.
- Possibility of appeal for holders before the judicial authority, with the obligation of justification and full traceability of the acts.
- Alignment with FATF standards (e.g., the Travel Rule, cross-border cooperation, and data retention).
- Enhanced obligations for operators, with stricter KYC controls, continuous transaction monitoring, and timely reporting.
How the Freezing of Accounts Would Work
The mechanism, outlined in the drafts, provides for a rapid and verifiable process with the aim of blocking suspicious flows in real-time, while still preserving minimum guarantees for users. That said, the process would be structured as follows:
- Trigger: the report of a suspicious transaction or the request for an investigation by the competent authorities.
- Block order: MASAK notifies banks and exchanges, which are required to apply the immediate freezing of the affected accounts.
- Time window: the block is imposed for a defined duration, with subsequent verification of the proportionality of the intervention.
- Protection: users have the opportunity to file an appeal and access a judicial review, with possible revocation or justified extension of the measure.
Impact on banks and crypto exchanges
The reform would impact the management of risk and daily compliance activities. In fact, among the main expected effects for operators and platforms are:
- AML/KYC Procedure: more rigorous onboarding, thorough checks on the origin of funds, and constant updating of sanction lists.
- Near real-time monitoring: alert systems to identify anomalous patterns, automatic blocks, and frequent audits.
- Operational continuity: risk of massive freezes that could affect clusters of accounts, with heavier impacts for smaller exchanges.
- Reputation: greater focus on transparency towards clients and authorities, with detailed reporting.
What changes for users
- Temporary blocks: possible suspensions of payments, withdrawals, and transfers following AML reports.
- Documentation: request for further information regarding identity, sources of funds, and the purpose of the transactions.
- Appeal: dedicated channels to contest the block and request a review of the measure.
- Cross-border transfers: stricter controls in line with the FATF Travel Rule.
Context and International Standards (FATF)
The package is part of Turkey’s path to align with global standards set by the FATF, which require timely controls, data exchange between authorities, and greater transparency in crypto transactions. It should be noted that the guidelines require intermediaries to identify the sender and recipient of virtual asset transfers, ensuring effective cross-border cooperation.
International Comparison
- United Kingdom: freezing orders and rapid seizures already in effect as part of AML investigations, followed by judicial review.
- EU: anti-money laundering packages are evolving, with the extension of the Travel Rule to VASPs (Virtual Asset Service Providers) and new proposals like the MiCA regulation that redefine the operational framework.
- Common trend: the introduction of faster precautionary blocks, accompanied by procedural guarantees and greater traceability of interventions.
Controversial Points and Risks to Monitor
- Proportionality: it is crucial to avoid generalized blocks that could penalize innocent users.
- Protections: need to define certain timelines for the review and specify obligations for detailed justification by the authorities.
- Data protection: caution in managing privacy and cybersecurity, especially when dealing with large volumes of sensitive data. For more information, see the recent guide on Privacy by Design in the AI era.
- Coordination: clarity on roles and responsibilities among MASAK, judicial authorities, and intermediaries to avoid operational frictions.
Next Steps
The bill, which is attracting great attention, is expected in Parliament in the coming weeks. The draft will need to precisely define the duration of the freezes, the appeal process, and the scope of obligations for banks and crypto exchanges. In the meantime, operators are updating their internal policies and monitoring tools in anticipation of the new measures coming into effect.
In summary
- Turkey is preparing to strengthen the powers of MASAK, introducing preventive blocks on bank accounts and crypto accounts.
- The focus is on greater speed of intervention, closer international cooperation, and specific protections for account holders.
- The impact will extend to the entire compliance sector, with KYC procedures and transaction monitoring that banks and exchanges will need to quickly adapt.
