New Turkish Crypto Law Mandates SPK Applications for Bitcoin Service Providers

• The newly enacted cryptocurrency law in Turkey mandates service providers to apply to the Capital Markets Board (SPK) within one month.
• The Capital Markets Law No. 6362 has been published in the Official Gazette and is now in effect, giving the SPK authority to oversee cryptocurrency asset service providers.
• According to SPK’s statement, those dealing with buying, selling, exchanging, transferring, or safeguarding crypto assets, including wallets’ private keys, must comply with legal obligations or face actions under Articles 99/A and 109/A of the law.

New cryptocurrency regulations in Turkey set stringent compliance timelines for service providers; SPK to oversee enforcement.

Major Legislative Changes Affecting Crypto Asset Service Providers in Turkey

The recent enactment of the Capital Markets Law No. 6362 marks a significant shift in the regulatory landscape for cryptocurrency service providers in Turkey. The Capital Markets Board (SPK) now holds the authority to regulate these entities, ensuring compliance with the new legal framework. This legislation requires all companies engaged in trading, exchanging, transferring, or storing crypto assets, as well as those managing the private keys of crypto wallets, to adhere strictly to established guidelines and procedures.

One-Month Compliance Deadline

According to the newly added Article 11, Section 1 of the law, entities involved in the crypto asset service sector must submit their applications to the SPK within one month from the law’s enactment. These businesses are required to either apply for an operational license or declare a resolution to liquidate their operations within three months to avoid impacting customer rights and interests adversely. Those currently active must ensure their compliance by August 2, 2024, with any liquidation processes finalized by October 2, 2024.

Restrictions on Foreign Crypto Platforms

The law also extends its reach to foreign-based cryptocurrency service providers. These international platforms must cease offering services to residents of Turkey by October 2, 2024. Non-compliance with this stipulation will trigger enforcement actions under the law’s Articles 99/A and 109/A. Moreover, facilities such as ATMs within Turkey that facilitate the conversion of cash into crypto assets are required to halt operations by the same deadline. This sweeping regulation aims to consolidate the control of crypto activities within domestic jurisdiction, ensuring a secure and regulated environment for digital asset transactions.

Conclusion

In summary, Turkey’s comprehensive new cryptocurrency regulations impose rigorous compliance requirements on service providers, both domestic and international. The SPK’s vigilant oversight is expected to bring significant changes to the operational dynamics of crypto businesses, enhancing legal conformity and market stability. Companies operating within this frame have tight timelines to adapt, marking a pivotal moment in Turkey’s financial regulatory evolution.