CMB announces details of the process regarding crypto assets

The Capital Markets Board (CMB) has published an "Announcement Regarding Crypto Asset Service Providers" concerning the regulations that were published in the Official Gazette yesterday and have since entered into force.

In the announcement made by the CMB regarding crypto asset service providers, it was stated that with the regulation in question, crypto asset service providers operating or intending to operate in Turkey have been brought under the regulatory and supervisory authority of the Board within the scope of the relevant law.

The announcement stated that any environment where one or more of the activities of buying, selling, swapping, transferring, and the necessary custody services of crypto assets, as well as the storage and management of crypto assets or private keys providing transfer rights from wallets related to these assets, are carried out as a regular occupation, commercial, or professional activity falls within the scope of the Law, and that actions will be taken against those who do not fulfill the obligations specified in the Law in accordance with the relevant articles.

The announcement included the following statements:

"With the regulation, the first paragraph of the Provisional Article 11 added to Law No. 6362 states: “Those who are conducting crypto asset service provider activities as of the effective date of the Law that introduced this article must, within one month from the effective date, submit a declaration to the Board with documents to be determined by the Board, stating that they will make the necessary applications to obtain an operating license by meeting the conditions to be stipulated in the secondary regulations to be issued in accordance with the provisions of Articles 35/B and 35/C of the Law, or that they will take a liquidation decision within three months without harming customer rights and interests and will not accept new customers during the liquidation process.

Those who wish to start operations after the entry into force of the Law that introduced this article declare that they will make the necessary applications to obtain an operating license by meeting the conditions to be stipulated in the secondary regulations by applying to the Board before starting their operations.

Applications made to the Board within the scope of this paragraph are announced on the Board's website. Organizations that will be liquidated announce this situation on their websites and also notify their customers via e-mail, text message, telephone, and similar communication tools.” the provision states.

In this context; those who are conducting crypto asset service provider activities as of 02.07.2024 and have the intention to continue doing so are required to submit their declarations in accordance with the first paragraph of the Provisional Article 11 to our Board in writing, along with the necessary information, documents, and explanations, by 02.08.2024.

Those who are conducting crypto asset service provider activities as of 02.07.2024 and will take a liquidation decision because they do not have the intention to continue this activity are required to submit their declarations regarding their decision to liquidate and that they will not accept new customers during the liquidation process, along with explanations on how they will carry out the liquidation process, to our Board in writing by 02.08.2024. In this context, organizations that will need to take a liquidation decision by 02.10.2024 in accordance with the Law, without prejudice to the relevant provisions of the Turkish Commercial Code No. 6102, shall announce this situation on their websites and also notify their customers via e-mail, text message, telephone, and similar communication tools. The responsibility for ensuring that notifications are properly delivered to customers belongs to the institutions that will be liquidated.

Organizations that wish to start operations after the date the Law enters into force but before the secondary regulations to be issued by our Board enter into force are also required to submit their declarations in accordance with the first paragraph of the Provisional Article 11 to our Board in writing, along with the necessary information, documents, and explanations, before starting their operations.

Applications made to the Board will be announced on our Board's website under the “Institutions/Crypto Asset Service Providers” tab in two separate lists as the “List of Those in Operation” and the “List of Those Who Have Declared Liquidation,” and it will be possible to access the current lists at https://spk.gov.tr/kurumlar/kripto-varlik-hizmet-saglayicilar. Incomplete or insufficient applications will not be included in the “List of Those in Operation.”

After the secondary regulations to be issued by our Board in accordance with the Law enter into force, no activity can be carried out by any organization not included in this list without obtaining permission from the Board. Furthermore, organizations included in this list will also apply for an operating license separately within the conditions to be specified in the secondary regulations, while continuing their operations.

Actions may be taken against those who have not applied to our Board in the manner and by the date specified above, in accordance with the provisions of Articles 99/A and 109/A of the Law.

It is considered useful to remind that the failure of these organizations to fulfill the transfer requests of customers who have accounts with organizations that choose to go into liquidation or that do not apply to the Board within the specified period will constitute the crime of unauthorized crypto asset service provision within the scope of Article 109/A, and these persons may be punished with imprisonment from three to five years and a judicial fine from five thousand to ten thousand days.

The first paragraph of Article 99/A of the Law states: “Activities carried out by platforms established abroad towards persons residing in Turkey or the provision of a prohibited activity regarding crypto assets to persons residing in Turkey within the scope of regulations to be made by the Board shall also be considered unauthorized crypto asset service provision.

In the presence of any of the situations such as opening a workplace in Turkey by platforms established abroad, creating a Turkish-language website, or engaging in promotion and marketing activities directly and/or through persons or institutions residing in Turkey regarding the crypto asset services offered, it is accepted that the activities are directed towards persons residing in Turkey. Additional criteria regarding the determination that the activities are directed towards persons residing in Turkey may be determined by the Board.” provisions are included.

In this context, crypto asset service providers established abroad must terminate their activities directed towards persons residing in Turkey as specified in the first paragraph of Article 99/A of the Law by 02.10.2024 at the latest. After this date, the provisions of Articles 99/A and 109/A of the Law will be applied to those who continue to engage in activities directed towards persons residing in Turkey in the specified manner.

The activities of ATMs and similar electronic transaction devices established in Turkey that allow customers to convert crypto assets into cash or cash into crypto assets and to carry out the transfer of crypto assets must also be terminated by 02.10.2024 at the latest. The provisions of Articles 99/A and 109/A of the Law will be applied to those who continue to operate after this date and those who facilitate this."

News Source: 12punto