The Capital Markets Board ("Board") issued and published the decision on crypto assets (Resolution of the Board Decision Making Body numbered i-SPK.35.B.1 (dated 19/09/2024 and numbered 1484) ("Resolution") in the Board's Bulletin dated 19.09.2024 and numbered 2024/48. Within the scope of the Provisional Article 11 of the Capital Markets Law No. 6362 ("Law"), which was added to the Law upon enforcement of the Law No. 7518 on the Amendment of the Capital Markets Law and regulates the transitional provisions regarding crypto assets, the following principles have been determined in order to carry out the transition process in a reliable manner and to prevent any negativities that may arise in the sector, pursuant to the Announcement Regarding Crypto Asset Service Providers published by the Board on 02.07.2024:
- Accounts opened on behalf of customers must be clearly identified as belonging to the relevant platform customers and must not be used for any other purpose.
- Cash transfers of platform customers shall be made through banks or institutions authorized in this regard in accordance with the relevant legislation. It is prohibited for platforms to receive customer cash in hand, deliver it to the customer in hand and store it on the platforms.
- All orders of the customers shall be received through the platforms' own websites, mobile applications or platforms' registered phones notified by the platforms to the Board and the records regarding the orders shall be kept securely and accurately, and it is prohibited to receive orders through other means or social media channels. As of 08.11.2024, it is obligatory to establish the infrastructure to ensure that the data and records regarding the orders are kept in accordance with the principles set out in the Decision and to keep the relevant data and records in accordance with these principles.
- Working in a structure similar to a foreign exchange office other than through media or methods deemed appropriate above and performing the purchase and sale, initial sale or distribution, settlement, transfer, custody transactions required by these, or performing transactions such as converting customers' crypto assets into cash or cash into crypto assets, etc. as a regular occupation, commercial or professional activity are considered within the scope of the articles of the Law regulating the measures to be applied on the activities of crypto asset service providers and unauthorized crypto asset service provider activity.
- With the Qualified Intellectual Property-NFT, crypto-assets used only to create or provide elements in virtual games are excluded from the listing principles set forth in the Law. The provisions of the Law will not apply to those who carry out the trading, initial sale or distribution, transfer and custody transactions of such crypto assets. Platforms included in the "List of Operators" are required to notify the Board if they trade these assets following the publication of the Decision. These platforms are required to trade these assets in a separate market other than the assets listed under the Law, inform the client that these assets are not subject to the supervision and audit of the Board and obtain confirmation from the client before taking orders.
- The activities to be carried out by institutions whose main activity is to provide prices to platforms to provide liquidity and to execute transactions based on the prices given and which do not provide any external service to investors within the scope of the definition of platform under the Law are not considered as platform activities under the Law.
- In peer-to-peer (P2P) digital marketplaces that allow the purchase, sale and exchange of crypto assets directly between users, performing transactions in the name of oneself and on behalf of others as a regular occupation, commercial or professional activity may be considered as unauthorized crypto asset service provider activity, and those who carry out these activities must terminate their activities until 08.11.2024.
- In cases where the activities within the scope of the matters falling under the authority and regulation of other institutions and organizations within the framework of the relevant legislation are not carried out in accordance with the regulations of these institutions and organizations, crypto assets within the scope of these activities cannot be listed on the platforms. As this rule also applies to capital markets legislation, before the Board issues a regulation on the issuance of capital market instruments as crypto assets pursuant to Article 13 of the Law, crypto assets cannot be issued and listed on platforms based on capital market instruments defined in Article 3 of the Law, indices whose value is determined in relation to capital market instruments, baskets where various asset groups (including crypto assets) are brought together, precious metals and underlying assets regulated in Communiqué No. VII128.3. In this context, new sales and distributions cannot be made by the platforms regarding the already listed crypto assets, but the assets that have already been sold and distributed are allowed to be converted into cash or transferred between customers within the framework of customer requests.
- Publications, announcements, advertisements and announcements to be made through communication channels and communication tools and media in relation to the services that platforms are authorized to provide must be objective. It is forbidden to make statements based on false, inaccurate or misleading information and to exploit the lack of experience or knowledge of customers and to make a guarantee commitment against absolute return and/or loss in publications, announcements, notices and advertisements published by the platforms, except as permitted by the legislation.
- Platforms are prohibited from conducting promotional campaigns that promise a certain return, direct investors to invest in certain crypto-assets, or provide a benefit to the customer or those who bring in customers through customer acquisition. Such campaigns must be terminated within two weeks from the date of publication of the Decision in a manner that does not cause investor disadvantage.
- In transactions where platforms are counterparties to their customers, it is essential to conduct sales up to the crypto assets in the platforms' wallets. Platforms are responsible for ensuring that the crypto assets subject to the transaction are in the relevant accounts and transferred to the parties in matching transactions of the customers. Platforms cannot dispose of the crypto assets and cash belonging to the customer in favour of themselves or third parties. Platforms may not engage in crypto asset lending transactions, transactions that would result in giving credit to the customer and leveraged transactions. Open positions and transactions of this nature must be closed in a way that does not cause customer disadvantage and with an appropriate transition period.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
