Regulation on crypto assets approved. First assessment from Minister Şimşek

Minister Şimşek made a statement regarding the crypto regulation passed by the Grand National Assembly of Turkey (TBMM). Treasury and Finance Minister Şimşek pointed out that the first legal regulation has been approved, stating, "With this law, which is similar to global examples, definitions and regulations regarding crypto assets have been established in our country."

Minister Şimşek said the following in his statement:

"The first legal regulation regarding crypto assets, which is one of the reform steps of our program, has been approved by our Supreme Assembly.

With this law, which is similar to global examples, definitions and regulations regarding crypto assets have been established in our country."

CRYPTO ASSET REGULATION IN 10 HEADLINES

The first legal regulation regarding crypto assets in Turkey has passed the TBMM. The Bill on Amendments to the Capital Markets Law, which includes regulations on issues such as the definition of crypto assets and obtaining licenses, was accepted and enacted in the General Assembly of the TBMM.

Here are the questions and answers regarding some of the changes the regulation will create in the crypto asset ecosystem, along with its prominent headlines:

WILL INVESTORS BE TAXED?

Taxation was one of the most curious topics regarding the regulation. The law does not include a provision for taxing investors.

Only platforms that will provide services in Turkey will pay 1 percent of all their revenues, excluding interest income from the previous year, to the Capital Markets Board (SPK) and 1 percent to the TÜBİTAK budget by the end of May of the relevant year, which will be recorded as revenue.

WHICH INSTITUTIONS WILL BE AUTHORIZED?

The SPK will be authorized in the issuance of capital market instruments as crypto assets. While the authority to regulate the ecosystem is given to the SPK, the criteria to be determined by TÜBİTAK regarding information systems and technological infrastructures will be applied.

WILL PERMISSION BE REQUIRED TO OFFER TRANSACTIONS TO USERS?

One of the main focus points of the initial regulations was the licensing processes of platforms providing services in the country. Accordingly, it will be mandatory for platforms to obtain permission from the SPK to be established and start operations.

Those currently carrying out service provider activities will make the necessary applications to obtain an operating license within 1 month from the effective date. If these platforms do not want to obtain a license, they will have to submit a declaration that they will decide to liquidate within 3 months without harming customer rights and interests.

WHAT WILL HAPPEN IF PLATFORMS OPERATE WITHOUT PERMISSION?

Real persons and officials of legal entities determined to be operating as crypto asset service providers without permission will be sentenced to imprisonment from 3 to 5 years and a judicial fine from 5 thousand to 10 thousand days.

WILL FOREIGN-BASED PLATFORMS BE CLOSED IF THEY DO NOT OBTAIN A LICENSE?

Under the law, no action will be taken against foreign-based platforms that do not provide services in the country and do not have a license.

However, opening a workplace in Turkey, creating a Turkish-language website, or engaging in any promotional and marketing activities regarding the offered crypto asset services directly or through individuals or institutions resident in Turkey by these platforms without obtaining a license will be considered unauthorized crypto service provision.

CAN CRYPTO ASSETS BE SEIZED?

Customers' cash and crypto assets cannot be seized due to the debts of crypto asset service providers. The assets of crypto asset service providers cannot be seized for public receivables due to customers' debts.

HOW WILL THE LISTING PROCESSES OF CRYPTO ASSETS BE CARRIED OUT?

The principles and procedures regarding the listing of crypto assets will be determined by the SPK. In the principles and procedures to be determined, technical criteria regarding the technological features of crypto assets may be included by taking the opinions of TÜBİTAK or other institutions and organizations deemed necessary. The fact that a crypto asset is listed by platforms will not mean that they are approved by the public.

WHO WILL AUDIT THE PLATFORMS?

The financial audit and information systems independent audit of crypto asset service providers will be carried out by independent audit firms included in the list announced by the SPK.

WILL PLATFORM EXECUTIVES RECEIVE PUNISHMENT?

If the chairman and members of the board of directors and other personnel of the crypto asset service provider commit the crime of embezzlement, they will be sentenced to imprisonment from 8 to 14 years and a judicial fine of up to 5 thousand days.

WILL CRYPTO ATMS BE USABLE?

Electronic transaction devices known as ATMs, which allow customers to convert their crypto assets into cash or crypto assets, will terminate their operations within three months following the date the law enters into force. ATMs that do not terminate their operations will be closed by the authorized administrations.

News Source: 12punto