Regulations on Crypto Assets were Adopted in the Turkish Grand National Assembly

(TURKISH GRAND NATIONAL ASSEMBLY)- The Bill of Law on Amending the Capital Markets Law, which includes regulations on crypto assets, was accepted in the General Assembly of the Turkish Grand National Assembly. The General Assembly suspended its work until July 2.

The Bill on Amendments to the Capital Markets Law was accepted in the General Assembly of the Turkish Grand National Assembly. The General Assembly suspended its work until July 2.

The regulations introduced with the proposal are as follows:

“With the proposal amending the Capital Markets Law, crypto asset service providers, the activities of crypto asset platforms, storage of crypto assets, and crypto asset buying, selling and transfer transactions that people residing in Turkey can make through crypto asset platforms are regulated.

The establishment and operation of crypto asset service providers are subject to the permission of the Capital Markets Board.

Prison sentences are imposed on those who operate without permission.

It is envisaged that the principles and fundamentals that crypto asset service providers must comply with during their activities will be determined by the Capital Markets Board through secondary regulations to be issued.

The principle is that the auditing of crypto asset service providers will be carried out by the CMB, with technical support from TÜBİTAK and other public institutions and organizations.

Crypto service providers are held responsible for illegal activities and information security violations. It is envisaged that board members will be held responsible for such situations and will be subject to embezzlement provisions.

Existing crypto asset service providers are expected to obtain an operating permit by applying to the CMB within 1 month from the effective date of the Law.

Crypto companies abroad are required to be included in the scope of ‘unauthorized crypto asset service provider activity’ if they do not end their activities for people residing in Turkey within 3 months.

It is envisaged that ATMs providing crypto services will be closed within 3 months from the effective date of the law.

The most negative aspect of the proposal is that it gives the Capital Markets Board the authority to ‘remove content and block access’ directly from the internet without a court order.

Until now, CMB could only apply to the court to block access in cases where unauthorized capital market intermediation activities were carried out on the internet, if they were in the country. He also wanted BTK to prevent access to unauthorized activities via the internet from abroad.

“With the new regulation, the CMB is authorized to remove content and block access directly due to unauthorized capital market activity, market distortions, information abuse and market fraud.”