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- Turkey takes a significant step in regulating cryptocurrency operations, as detailed by AK Party Group Chairman Abdullah Güler.
- The proposed law introduces stringent measures for crypto exchanges and service providers, enhancing investor security under SPK oversight.
- “This legislation comprises 19 articles aimed at securing and regulating the crypto ecosystem,” stated Abdullah Güler.
This article delves into Turkey’s new crypto asset law, exploring its implications for investors and service providers under SPK regulation.
Overview of the New Crypto Asset Law
The new legislative proposal, as outlined by Abdullah Güler, includes comprehensive definitions and regulations for cryptocurrency wallets, exchanges, and service providers. This initiative is a part of Turkey’s broader efforts to integrate digital assets into its formal economic framework, ensuring a secure environment for investors and aligning with global standards.
Key Provisions and Their Impact
The law mandates crypto exchanges to obtain licenses from the SPK (Capital Markets Board of Turkey), ensuring that these platforms operate under strict regulatory oversight. It also sets forth requirements for technological infrastructure, dictated by TÜBİTAK (Scientific and Technological Research Council of Turkey), to bolster system security. Furthermore, the legislation specifies that all crypto asset sales and distributions must be regulated by the SPK, with a preliminary report from TÜBİTAK required for issuing new crypto assets.
Legal Framework and Investor Protection
Under the new law, any contractual terms that limit or waive the liability of crypto asset service providers towards their customers will be deemed invalid. This measure is designed to protect investors and ensure accountability. Additionally, the law introduces mechanisms to address complaints and disputes, enhancing transparency and trust in the sector. It also includes provisions to prevent market manipulation and unauthorized operations, with severe penalties for non-compliance, including potential imprisonment.
Transition Period and International Providers
Existing crypto asset service providers will undergo a transition period, requiring them to either register with the regulatory board within one month or initiate liquidation within three months. The law also addresses the operations of international crypto asset providers, mandating a structured phase-out during the transition period.
Conclusion
The introduction of this law marks a pivotal development in Turkey’s approach to cryptocurrency regulation. By establishing a robust legal framework, the country aims to protect investors, prevent financial crimes, and foster a healthy digital asset market. As the global landscape of cryptocurrency continues to evolve, Turkey’s proactive measures could serve as a model for other nations seeking to regulate this dynamic sector.
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