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Law On Amendments To The Capital Market (Law No. 7518) entered into force on 26.06.2024. The relevant law contains new regulations regarding crypto assets.
According to the regulation, crypto assets are defined as intangible assets that can be created and stored electronically using distributed ledger technology or similar technology, distributed over digital networks, and that can express value or rights. Crypto asset service providers are defined as the platforms, organizations that provide crypto asset custody services and other organizations designated to provide services related to crypto assets, including the first sale or distribution of crypto assets in the regulations to be made based on this Law. Crypto asset custody service refers to the storage and management of platform customers' crypto assets or private keys that provide the right to transfer these assets from the wallet, or other storage services to be determined by the Board. And lastly Platforms are defined as the organizations where one or more of the crypto asset trading, initial sale or distribution, clearing, transfer, storage required therein and other transactions that can be determined are carried out.
Those who carry out crypto asset service provider activities on the date of entry into force of the Law, must either apply to the Capital Markets Board with the documents to be determined by the Board, within one month from the effective date, to obtain an operating permit by meeting the conditions to be stipulated in the secondary regulations to be issued in accordance with the provisions of Articles 35/B and 35/C of the Law or submit a statement stating that they will make the necessary applications or take a liquidation decision within three months without harming customer rights and interests, and that they will not accept new customers during the liquidation process. Those who want to start their activities after the Law comes into force, must declare that they will apply to the Board before starting their activities and make the necessary applications to obtain an operating permit by meeting the conditions stipulated in the secondary regulations.
Crypto asset service providers must comply with the principles determined by the Board regarding publications, announcements, advertisements and announcements and all kinds of commercial communications.
Crypto asset service providers are given a certificate of authorization indicating the activities they will perform. For banks, the approval of the Banking Regulation and Supervision Agency is required.
Carrying out activities by platforms established abroad for persons residing in Turkey or offering a prohibited activity regarding crypto assets to persons residing in Turkey within the scope of the regulations to be made by the Board, is also considered as unauthorized crypto asset service provider. In case of opening a business in Turkey by platforms based abroad, creating a Turkish website, or carrying out promotional and marketing activities directly and/or through persons or institutions resident in Turkey regarding the crypto asset services offered, the activities will be carried out in Turkey, are considered to be for residents. Additional criteria for determining whether the activities are aimed at persons residing in Turkey may be determined by the Board.
The law also determines the rules for transactions between crypto asset service providers and customers. It has been stipulated that the principles regarding the contracts to be signed between customers and service providers will be determined by the Board.
Platforms are obliged to establish internal mechanisms that will effectively resolve customers' objections and complaints regarding their transactions.
Reference/ Citation
Official Gazette dated on 2nd July 2017
