- The Capital Markets Board (SPK) has released its bulletin dated August 8, 2024, outlining the establishment requirements for cryptocurrency service providers.
- Existing entities listed on the “Active Entities List” must comply and submit their applications by the close of business on November 8, 2024.
- According to SPK’s regulations, cryptocurrency service providers must be established as joint stock companies and possess a minimum capital of 50,000,000 TL.
Discover the latest regulations for cryptocurrency service providers in Turkey and what it means for the industry.
New Regulatory Requirements for Cryptocurrency Service Providers
The SPK’s latest bulletin mandates that cryptocurrency service providers operate as joint stock companies with a minimum capital of 50,000,000 TL. This move aims to bring more structural integrity and reliability to the burgeoning crypto sector in Turkey. By enforcing these regulations, the board hopes to curb fraudulent activities and ensure a higher standard of operations. Companies are required to be transparent, with a minimum of three shareholders, and their activities must be limited to cryptocurrency transactions.
Mandatory Compliance and Application Deadline
Entities already operating in the crypto space must align with the new regulations and submit the necessary applications to the SPK by November 8, 2024. The application process will necessitate comprehensive documentation, including details about the company’s IT infrastructure, custody processes, and organizational structure. Non-compliance may result in severe penalties, including the prohibition of unlicensed cryptocurrency services. This rigorous framework underscores the SPK’s commitment to creating a transparent and secure crypto environment in Turkey.
Transparency and Corporate Governance Standards
The SPK has emphasized stringent corporate governance standards, requiring companies to establish a transparent shareholder structure comprising a minimum of three members. Furthermore, the firm’s operations should exclusively focus on cryptocurrency transactions. This level of oversight is designed to instill greater confidence among investors and stakeholders, fostering a more robust and mature cryptocurrency market.
Leadership and Financial Integrity Criteria
Stringent criteria have also been set for company founders and senior executives. Applicants must not have declared bankruptcy, undergone debt restructuring through concordat, or sought insolvency postponement. Moreover, they should possess the necessary financial strength and a reputation for integrity. Individuals entitled to over half of the distributable profit must also meet specific conditions, ensuring that leadership maintains a high standard of trustworthiness and reliability.
SPK’s Active Entities List
The SPK has published an “Active Entities List” as of July 2, 2024, enumerating all currently functioning cryptocurrency service providers. This list serves as a reference for both industry participants and regulators, ensuring all active entities are aware of their operational status and the impending regulatory requirements. The list also promotes transparency, allowing stakeholders to verify the legitimacy of service providers.
Conclusion
The new regulations by SPK mark a significant milestone in the evolution of the cryptocurrency market in Turkey. By enforcing higher capital requirements and stringent governance standards, the SPK aims to foster a secure and transparent crypto environment. Existing entities must comply with these requirements by November 8, 2024, to continue their operations. This move is expected to enhance investor confidence and stimulate more structured growth within the sector, paving the way for a more stable and reliable cryptocurrency market in Turkey.
