The Amendment Law regarding the crypto assets, submitted to the Presidency of the Grand National Assembly of Turkey on 16 May 2024, was approved by the General Assembly on 26 June 2024, and subsequently published in the Official Gazette on 2 July 2024, thereby entering into force. Under the amendment, existing crypto asset service providers operating in Turkey are required to apply to the Board for an operating license within one month or submit a declaration to the Board within three months stating their decision to liquidate. Details of the application process are provided in the Announcement Regarding Crypto Asset Service Providers published by CMB.
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The Law Amending the Capital Markets Law (“Amendment Law“), which was adopted by the General Assembly of the Grand National Assembly of Turkey on 26 June 2024, was published in the Official Gazette dated 2 July 2024, numbered 32590, and thereby entered into force. Details of the Amendment Law can be found in our article titled “Draft Law on Regulations Regarding Crypto Assets Submitted to the Presidency of Grand National Assembly of Turkey “ dated May 17, 2024. Article 17 of the Amendment Law, which adds Provisional Article-11 titled “transitional provisions regarding crypto asset service providers” to the Capital Markets Law, contains significant regulations. Starting from 2 July 2024, the effective date of the Amendment Law, firms currently providing crypto asset services shall apply to the Capital Markets Board (“the Board“) for an operating license no later than one month from this date—in other words, by 2 August 2024, unless an extension is granted. Applications must be submitted with documents specified in the Amendment Law and conditions to be determined by secondary regulations issued by the Board. Firms that will not apply for an operating license must submit a declaration to the Board within three months stating their decision to liquidate and that they will not accept new customers during the liquidation process, ensuring that customer rights and interests are not harmed. Applications will be announced on the Board’s website, and firms undergoing liquidation must inform their customers and announce the situation on their websites. In the announcement published by the CMB on 2 July 2024, companies that decide to liquidate because they do not intend to continue their crypto asset service activities as of 2 July 2024, are required to submit the information form included in the announcement, along with their declaration of liquidation and how they will conduct the liquidation process, by 2 August 2024. Companies intending to continue their operations are expected to submit to the CMB by 2 August 2024, the following: (i) a board of directors’ resolution, (ii) documents related to shareholders, board members, the general manager, and assistant general managers, (iii) information on the company’s systems and technical equipment, (iv) information and documents related to the company’s custody infrastructure, and (v) an organizational chart. Firms that fail to comply with these obligations will be subject to the provisions of Articles 99/A and 109/A of the Capital Markets Law. Failure to apply for an operating license or to make a liquidation decision will result in unauthorized crypto asset service provision if the firms do not fulfill their customers’ transfer requests. Foreign crypto asset service providers must cease their activities aimed at persons residing in Turkey by 2 October 2024, as stipulated in the first paragraph of Article 99/A of the Law. The activities of ATMs and similar electronic transaction devices located in Turkey that allow customers to convert crypto assets into cash or cash into crypto assets and to transfer crypto assets will be terminated until 1 October 2024. The full text of the Amendment Law can be accessed through this link (only available in Turkish); and our article titled “Law Proposal on Regulations Regarding Crypto Assets Submitted to Presidency of the Grand National Assembly of Turkey” can be accessed through this link. |
