The Draft Crypto Assets Law was Submitted to the Grand National Assembly of Türkiye
Draft Law on Amendments to the Capital Markets Law No. 6362 (Draft Crypto Assets Law) was submitted to the Grand National Assembly of Türkiye. The Draft Crypto Assets Law envisages amendments to the Capital Markets Law dated 6.12.2012 and numbered 6362 (CML). The following additions and amendments are planned to be made to the provisions of the CML:
- The definitions of wallet, crypto asset, crypto asset service provider, crypto asset storage service and platform will be added to the CML. Accordingly, “crypto asset” refers to intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology distributed over digital networks and can express value or rights; “crypto asset service provider” refers to platforms, crypto asset storage service providers and other entities designated to provide services in relation to crypto assets, including the initial sale or distribution of crypto assets in the regulations to be made based on this Law; “wallet” refers to software, hardware, systems or applications that enable the transfer of crypto-assets and the online or offline storage of these assets or the private and public keys related to these assets; “crypto asset storage service” refers to the storage, management or other custody services to be determined by the Capital Markets Board of Türkiye (Board) of the crypto assets of the platform customers or the private keys that provide the right to transfer these assets from the wallet; “platform” refers to the organizations where one or more of the crypto asset trading, initial sale or distribution, exchange, transfer, custody required by them and other transactions.
- The Board can determine the principles for the issuance of capital market instruments as crypto assets. In this case, crypto assets will be dematerialized and monitored in electronic environment. In the event that the capital market instruments are issued as crypto assets, electronic environment records where these assets are created and stored will be taken as basis in the processes of monitoring, asserting and transferring rights against third parties.
- The establishment and operation of crypto asset service providers and the activities they may conduct (even if the crypto asset subject to the service provided by the crypto asset service provider is not a capital market instrument) are subject to the Board's authorization. The Board will be authorized to determine the relevant principles and guidelines, particularly the company structure and activities. In order for crypto asset service providers to be allowed to establish and/or launch operations, their information systems and technological infrastructure must comply with the criteria to be determined by TÜBİTAK.
- The share transfers of crypto asset service providers must be authorized by the Board, otherwise such transactions will be void.
- The crypto asset service providers are not subject to the rest of the provisions of the CML other than the ones that explicitly refer to them.
- The rules regarding the trading, initial sale or distribution, exchange, transfer and storage of crypto assets through the platforms will be determined by the Board separately.
- The Board is authorized to determine the principles regarding the contracts between crypto asset service providers and their customers and to allow the contracts to be executed using remote communication tools. In addition, contractual terms that eliminate or limit the liability of crypto asset service providers to their clients will be void.
- Prices will be formed freely on the platform. Platforms are obliged to make the necessary determinations regarding market abuse, to notify the Board and to take the necessary measures, including restriction, suspension and closure of accounts that execute such actions and transactions. In crypto asset transfer transactions, the regulations of the Board and the Financial Crimes Investigation Board must be complied.
- Draft Crypto Assets Law foresees that the cash and crypto assets of the customers held by the crypto asset service providers will be prohibited to be seized, pledged, included in the bankruptcy estate, and subjected to precautionary measures due to the debts of the crypto asset service providers, and the assets of the crypto asset service providers shall be prohibited to be seized, pledged, included in the bankruptcy estate, and subjected to precautionary measures due to the debts of the customers, even if it is for public receivables. All kinds of administrative and judicial request such as injunctions, attachments and similar administrative and judicial requests regarding cash and crypto assets belonging to customers will be fulfilled exclusively by crypto asset service providers.
- The Draft Crypto Assets Law stipulates that engaging in activities related to crypto-assets by platforms based abroad for persons residing in Türkiye will be deemed as unauthorized crypto-asset service provision. In parallel with this provision, it is stipulated that the activities of the platforms located abroad conducted for persons residing in Türkiye must be terminated within 3 months as of the date of entry into force of the Draft Crypto Law.
- The Board is authorized to impose measures and administrative fines for unlawful activities and transactions of crypto asset service providers.
- The crypto asset service providers will be liable for damages arising from their unlawful activities as well as transactions and failure to fulfill their obligations. In addition, company executives may also be liable for these damages to the extent of their fault.
- The liability of crypto asset service providers arising from the operation of information systems, all kinds of cyber-attacks, acts such as information security breaches or losses of crypto assets arising from all kinds of behaviors of the personnel will be determined according to the principles of hazard liability stipulated in the Turkish Code of Obligations No. 6098.
- Individuals and legal entities that operate as crypto asset service providers without authorization will be imprisoned and fined.
- The provisions of the Law on the Protection of the Value of Turkish Currency dated 20.2.1930 and numbered 1567 and the provisions of the relevant legislation are reserved for all kinds of transactions made with crypto assets and that the Law No. 6750 dated 20.10.2016 on the Pledge of Movables in Commercial Transactions in Commercial Enterprises will not be applied to the agreements on pledge of crypto assets.
- The proposed amendments are planned to enter into force on the date of their publication.
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