Turkey Implements New Regulations for Cryptocurrency Investor Protection

The Capital Markets Board (CMB) has introduced a new set of regulations for the cryptocurrency sector, effective immediately following amendments to the Capital Markets Law No. 7518.

These regulations align with Temporary Article 11 of Capital Markets Law No. 6362 and cover various aspects, including platform operations and customer rights protection.

Key provisions include the requirement for platforms to maintain customer funds in separate bank accounts, ensuring these funds are distinct from the platform’s assets. Customer transactions must be conducted only through authorized institutions. Additionally, platforms can accept orders solely through their official websites, mobile apps, or registered phone lines, with all order data needing secure, unchangeable storage.

Activities resembling exchange offices will be considered unauthorized, necessitating a halt by November 8, 2024. Non-fungible tokens (NFTs) and virtual game assets are exempt from standard listing rules, but platforms must notify the CMB if they process such assets. Platforms must transparently inform customers about whether the traded assets fall under CMB supervision and ensure accurate communications without misleading claims.

Entities providing liquidity without investor services are not classified as platforms, yet unauthorized services in peer-to-peer marketplaces must cease by November 8, 2024. The use of crypto assets in connection with other asset classes remains regulated, and compliance is mandatory for listing. Furthermore, platforms must integrate with the Central Registry Agency (MKK) and share relevant data.

Finally, platforms must manage customer crypto transactions responsibly, prohibiting third-party disposals or lending practices. This regulatory framework is anticipated to affect referral campaigns within cryptocurrency exchanges.