The bill prepared on the legal regulations and definitions of crypto assets is ready to be presented to the Parliament with its final touches. The proposal, which is expected to be presented to the Parliament this week, will ban short selling and leveraged transactions regarding crypto assets.
Crypto assets will be defined as “intangible assets” for the first time, and thus transactions can be carried out in a more transparent and reliable manner. The bill to be presented to the Parliament will harmonize the broad definition of crypto assets with the definitions of international organizations.
The authority to determine the issuance principles will be given to the Capital Markets Board (CMB). The licensing and auditing processes of trading platforms will also be managed by the CMB. Minimum operating requirements similar to financial institutions will be introduced for service providers.
All transfer transactions made on the platforms will be recorded and compliance with the regulations determined by the Financial Crimes Investigation Board (MASAK) will be ensured. Since sudden and large fluctuations may occur in the prices of crypto assets, margin transactions, short sales and leveraged transactions that increase risk will be prohibited.
It is stated that similar prohibitions and restrictions have been introduced in practices abroad. Secondary regulations will be made on investment consultancy and portfolio management and the CMB will be authorized in this regard.
Due to the risky nature of crypto asset investments, no insurance mechanism will be created for trading transactions. These transactions will be exempt from investor compensation. In the draft law, the crime of “unauthorized crypto asset service provider” is defined and penalties are foreseen for those who operate without permission from the CMB.
*This is not investment advice.
