What happened? Turkey is giving its financial crime watchdog the power to freeze and limit crypto accounts.
Turkey plans to give its financial crime watchdog Masak the power to freeze and limit access to crypto accounts to fight money laundering. New rules would force exchanges to collect ID for transactions over 15,000 lira, require 20-character transaction notes, delay withdrawals for 48–72 hours, cap stablecoin transfers and set licensing and capital minimums. Platforms that don’t comply could face fines, denied licenses or cancellation and the proposal is expected to go to parliament soon.
Who does this affect? Crypto users, exchanges and service providers in Turkey will feel the impact most.
Crypto users in Turkey, especially those making bigger transfers or using stablecoins, will need to share more personal data and may see their withdrawals delayed. Exchanges and wallet providers must build stronger KYC and Travel Rule systems and meet new capital and licensing requirements or face penalties. International players and smaller local firms could be pushed out while compliant platforms and regulators gain more control.
Why does this matter? It changes market dynamics by raising compliance costs and shifting liquidity.
These changes will likely cut down illicit flows but raise compliance costs, which could reduce liquidity and trading volume in the short term. Some big exchanges might scale back or leave, narrowing options for traders and widening spreads. Over the long run clearer rules and stronger oversight could attract institutional money and stabilize the market, but expect near-term volatility and slower growth as the sector adjusts.