Crypto assets have been regulated with the amendment introduced to the Capital Markets Law. Amending law defined wallet, crypto asset, crypto asset service provider, crypto asset custody service and crypto asset trading platform and regulated the basic principles regarding crypto assets.

Service providers are required to obtain authorisation from the Capital Markets Board (“CMB”) in order to be established and launch their operations. The CMB will determine the conditions that service providers shall fulfil and the principles subject to their activities. Service providers will not be subject to the provisions of the Capital Markets Law which do not specifically refer to them. Service providers are obliged to make the necessary arrangements, take the necessary measures and establish the necessary internal control units and systems in accordance with the criteria to be determined by TÜBİTAK in order to manage their systems securely.

The principles regarding the trading, initial sale or distribution, exchange, transfer and storage of crypto assets through the platforms will be determined by the CMB. Contracts between service providers and clients may be concluded in writing, by way of a distant contract, or by methods that allow verification of customer identity through a communication device that the CMB determines to be a substitute the written form. The CMB will regulate the principles regarding the content and execution of these contracts. Provisions limiting the contractual liability of service providers will be void. Platforms are required to provide mechanisms to effectively resolve client objections and complaints. Platforms are required to provide a written listing procedure for determination and termination of trading of crypto assets to be traded or for initial sale or distribution of crypto assets. The CMB, in consultation with TÜBİTAK or other relevant institutions, will regulate the principles in this regard. Platforms are responsible for the free formation of prices, the detection and prevention of market abuse, and taking necessary measures.

Crypto assets will be stored in the clients’ own wallets. Custody services for crypto assets that clients do not prefer to store in their own wallets will be provided by banks or other institutions authorised by the CMB to provide crypto asset custody services, and cash belonging to clients will be stored by banks. Clients’ crypto assets and cash will be stored and recorded separately from the assets of the service provider and cannot be seized due to the debts of the service provider under any circumstances.

In the event that a platform resident abroad opens a place of business in Türkiye, creates a website in Turkish, and engages in promotional and marketing activities, such platforms will be deemed to be operating for Turkish residents and these activities will be subject to the authorisation of the CMB.

Changes in the shareholding structure of service providers will also be subject to the authorisation of the CMB. The qualifications required to be fulfilled by the shareholders, managers and those who have control over service providers are also stipulated.

With the amendment, the responsibilities of service providers and their managers and the sanctions to be applied in case of breach of these responsibilities have also been regulated. These amendments have entered into force through its publication in the Official Gazette dated 02.07.2024. Service providers are obliged to apply to the CMB until 02.08.2024 for an operating licence if they will continue their operations, or to declare that they will take a liquidation decision within three months if they will not continue their activities. Service providers resident abroad are obliged to terminate their activities within one month as of the effective date.

Should you have any inquiries, please do not hesitate to contact us.