New regulations concerning cryptocurrency investors in Türkiye came into force after being published in the Official Gazette.
The “Communiqué on the Establishment and Operating Principles of Crypto Asset Service Providers” and the “Communiqué on the Working Principles and Principles and Capital Adequacy of Crypto Asset Service Providers” prepared by the Capital Markets Board (CMB) were published in the Official Gazette.
According to the published circular, cryptocurrency platforms can be established with a minimum capital of 150 million TL, and custody institutions can be established with a minimum capital of 500 million TL.
According to the new regulation, cryptocurrency exchanges will not be able to store customer funds directly. According to the new regulation; customer cash will be kept in special accounts in banks and these accounts will be tracked separately from the platforms’ own assets.
95 percent of cryptocurrencies that customers choose to store outside of their own wallets will need to be held at the custodian, and the platform will be able to store a maximum of 5 percent.
“It is essential that 95% of the crypto assets that customers do not prefer to keep in their own wallets are kept in the custody institution in accordance with the provisions set out in the Communiqué.
“The maximum 5% portion that is not kept in the custody institution is kept in wallets on the platform.”
Cryptocurrency platforms are required to hold liquid reserves of at least 3% of customer assets.
Leveraged Trading Banned!
According to the published secondary regulations, leveraged transactions in cryptocurrency markets were banned. It was stated that the purpose of this decision was to protect investors from excessive risk and to prevent sudden fluctuations in the markets.
With this ban, stock exchanges operating in Türkiye will not be able to offer leveraged transactions to investors.
Reserve Requirement!
According to the published circular, crypto asset service providers will have to undergo an independent audit of their information systems and will be obliged to have a proof of reserve audit. Platforms will be obliged to have an independent audit of their information systems at least once a year.
It was stated that these audits aim to increase the transparency of the platforms and protect the rights of users.
Listing Criteria!
According to the new rules, cryptocurrency exchanges operating in Türkiye will determine the assets they will list in accordance with the principles in the circular. The exchanges will form a listing committee within themselves and cryptocurrencies can be listed according to the conditions specified in the circular.
“Platforms are obliged to check the minimum elements to be written into smart contracts and to review the accuracy of the contracts according to the type and legal nature of each crypto asset whose initial sale or distribution they will mediate.
Platforms cannot facilitate the initial sale or distribution of crypto assets that are deemed not to comply with the minimum listing criteria specified in this Communiqué.”
İşte Türkiye’nin Altcoin ve Kripto Para Listing Criteria!
“Crypto assets that can be listed:
ARTICLE 21 – (1) Except for the second paragraph of Article 17, it is essential to list crypto assets that can be stored in custody institutions authorized by the Board on platforms. Crypto assets to be listed on platforms must comply with the following principles:
a) It must be in compliance with the principles set out in the first, third and fourth paragraphs of Article 16.
b) There are no restrictions or prohibitions imposed by the relevant authorities regarding the issuance of the underlying asset of the crypto asset and its use in trading transactions, and it is not of a nature that can be used for this purpose in a way that exceeds legal regulations or to a significant extent.
c) It is not designed to provide unilateral extraordinary rights to the project owner.
c) The project owner should not be on national or international banned lists within the scope of the provisions of Law No. 7262 regarding money laundering and financing of terrorism.
d) It does not allow transfers by hiding wallet addresses.
e) It can be stored in cold wallets.
(2) Except for other crypto assets specified in the third and fourth paragraphs of Article 16 and determined by the Board, the Platforms themselves or;
a) Partnerships in which a natural person and their spouse and children under their custody participate with unlimited liability or in which they are the chairman, member, general manager or assistant general manager of the board of directors,
b) A legal entity, excluding public legal entities, or partnerships in which the above-mentioned parties directly or indirectly hold 10% or more of their capital or voting rights,
c) Those who are determined by the Board to be acting together due to employment, contractual or other reasons,
cannot list the crypto assets it first sold or distributed.
(3) The assets specified in subparagraph (a) of the first paragraph of Article 7 are excluded from the listing principles.
*This is not investment advice.
