The bill to amend the Capital Markets Law submitted to the Turkish Grand National Assembly was accepted by the General Assembly. Thus, for the first time, different definitions regarding crypto assets were officially established. With the definitions also came new regulations regarding crypto assets.

The definitions according to the regulation are as follows:

The central registration office will have jurisdiction

The Central Registration Office will be authorized to establish the principles for the issuance of capital market instruments as crypto assets without their inclusion in the Central Registration Office system. The board will be able to determine the principles regarding the issuance of these assets as crypto assets, instead of monitoring them by MKK, and their recorded monitoring in the electronic environment offered by the service providers where they are created and stored . The data in which crypto assets are created and stored will be taken as a basis for monitoring the rights to these assets, asserting them against third parties and transferring them.

Furthermore, crypto asset service providers will need to obtain approval from the Council in order to be incorporated and begin operating. These organizations will carry out the activities determined by the board. Principles regarding the establishment and commencement of their activities, partners, managers, personnel, organization, capital and capital adequacy, liabilities, information systems and technological infrastructures, share transfers, activities they may undertake, temporary or permanent suspension of their activities, and other principles and principles that they must adhere to in their work. This is determined by the board. It will be mandatory to obtain approval from the Board of Directors for share transfers. Transfers that violate the regulations will not be recorded in the stock ledger, and records made in violation will be considered null and void.

Providers of crypto asset services will be required to make the necessary arrangements, take precautions and establish the necessary internal control units and systems so that their systems can be managed securely. In order for crypto asset service providers to be authorized by the Council to establish and/or start activities, compliance with the criteria to be established by TÜBİTAK regarding information systems and technological infrastructures will be required.

There will be new conditions for partners who set up service providers

According to the new regulations, the partners of crypto asset service providers must not be bankrupt, must not have been declared bankrupt, must not have had their application for restructuring by compromise approved or a decision to postpone bankruptcy, and must not have a final conviction for crimes listed in the relevant laws, and the transaction must not be prohibited; on the other hand, they will have to have the necessary financial strength, honesty and reputation required for the position, and that the partnership structure is transparent and open.

CMB, on the other hand, will have the authority to regulate the procedures and principles in the purchase and sale of crypto assets through the platforms and in the initial sales or distribution transactions, exchange, transfer and storage of crypto assets.

Providers of crypto asset services are not subject to any provisions of the law other than those referred to. In addition, platforms are guaranteed price freedom. Platforms will determine the order and transaction principles, establish the necessary supervisory system and take all kinds of preventive measures to ensure that transactions are carried out in a reliable, transparent, effective, stable, fair, fair and competitive manner, and to detect: prevent and prevent recurrence of market disruptive actions and transactions.

Prevent market-distorting transactions

It will be obliged to take decisions on market disruptive actions and transactions carried out on the platform, to take necessary measures, including restricting, stopping and closing the accounts carrying out such actions and transactions, and to submit the findings to the management to report. .

The relations between the platforms and their customers and any disputes that may arise as a result of transactions to be carried out on the platform are subject to the general provisions. Crypto assets are not subject to investor compensation provisions. Data relating to the wallets where customers’ crypto asset transfers are made and the accounts where money transfers are made will be kept secure, accessible and traceable by crypto asset service providers. The integrity, accuracy and confidentiality of all transaction data will be guaranteed. Customer crypto asset transfer transactions will comply with the regulations of the Board and the Financial Crimes Investigation Board. The information and data intended to be included in transfer messages relating to the sender and recipient are transmitted securely by crypto asset service providers within the time limits specified in the regulations. For this purpose, software applications and technological tools that enable messaging can be used, such as distributed ledger technology, another independent messaging platform, or an application interface.

It will be essential for platforms to keep their customers’ crypto assets in their customers’ wallets, and the crypto assets stored in banks and customers’ cash within this scope will not be subject to the provisions of insurance of deposits and participation funds. regulated in Article 63 of the law.