New Turkish Legislation Requires SPK Approval for Crypto Service Providers

• The new law amending the Capital Market Law has been published in the Official Gazette and has come into force.
• This marks a significant step as crypto assets are now officially recognized as intangible assets for the first time.
• Crypto service providers must now obtain approval from the Capital Markets Board (SPK) to operate legally.

Breaking down Turkey’s latest crypto regulations and their implications for the market.

Introduction of Legal Framework for Crypto Assets

Turkey has introduced a landmark regulatory framework for crypto assets through amendments to the Capital Market Law. This legislation, now published in the Official Gazette, legally categorizes crypto assets as intangible assets and sets comprehensive guidelines for their management and operation.

Regulation of Crypto Asset Service Providers

Under the new law, entities providing crypto-related services must secure approval from the Capital Markets Board (SPK). This applies to platforms offering custody services, initial sales or distributions of crypto assets, and related activities. The SPK’s stringent criteria encompass organizational structure, managerial personnel, financial adequacy, and technological infrastructure, all of which must meet standards set by TÜBİTAK.

Enforcement and Compliance Measures

The legislation imposes severe penalties for unlicensed operations, ranging from three to five years of imprisonment and hefty fines between 5,000 and 10,000 days. Additionally, all transactions conducted on these platforms will be meticulously recorded, ensuring transparency and regulatory compliance.

Establishment of Listing Procedures

The SPK is also tasked with creating procedural guidelines for listing, trading, initial sales, distribution, exchange, transfer, and custody of cryptocurrencies on platforms. Written listing procedures will determine which cryptocurrencies can be listed and traded, and the conditions under which their trading may be terminated.

Collaboration with TÜBİTAK and Public Institutions

To ensure technical compliance, TÜBİTAK will establish criteria for information systems and technological infrastructure. Platforms must adhere to these standards to operate legally. Moreover, for regulatory obligations, platforms might need to obtain technical reports from TÜBİTAK or collaborate with other public institutions and ministries.

Conclusion

The introduction of these regulatory measures represents a pivotal moment for the crypto market in Turkey. By establishing a clear legal framework and stringent compliance requirements, the Turkish government aims to enhance market transparency and protect investors. As these regulations take effect, stakeholders must adapt to the new legal environment to capitalize on the growing crypto market responsibly.