The bill to amend the Capital Markets Law, which includes regulations regarding crypto assets, was accepted by the General Assembly of the Turkish Grand National Assembly (TBMM) and became law. This new law aims to ensure a safer and orderly functioning of the crypto market by introducing legal regulations on issues such as buying, selling, clearing and storing crypto assets.

According to the law, the establishment and activities of crypto asset service providers were subject to the permission of the Capital Markets Board (CMB), and employees without permission were sentenced to prison.

Existing crypto asset service providers must apply to the CMB and obtain an operating permit within 1 month from the date of entry into force of the law.

The audit of crypto asset platforms will be carried out by independent auditing organizations on the list announced by the CMB.

Natural persons and legal entities who are found to be operating as crypto asset providers without permission will be sentenced to imprisonment from 3 to 5 years and a judicial fine of 5,000 to 10,000 days.

The principles and principles that crypto platforms must comply with in their activities will be determined by the Capital Markets Board with secondary regulations to be issued.

Answering questions from BBC Turkish, Binance Turkey CEO Mücahit Dönmez thinks that legal regulations regarding crypto assets aim to eliminate uncertainties in the sector and provide security.

Dönmez says, "We believe that this process will bring a corporate identity to the sector in our country, increase confidence in the sector and make a meaningful contribution to growth."

Paribu Legal Director Lawyer Mehmet Türkarslan states that the law in its current form is a "framework regulation" and that the secondary regulations to be put forward by the CMB will be more decisive:

“It is not possible to say at this stage whether the law will take the industry forward; "Because the secondary regulations and especially the principle decisions to be made by the Capital Markets Board with the powers granted by this framework law will determine the direction of the sector."

“A prohibitionist approach will negatively affect the sector”

With the law, CMB's powers regarding unauthorized capital market intermediation activities carried out over the internet were also expanded.

When the CMB detected unauthorized internet activity within the country, it would apply to the court and get a decision to block access.

For those originating from abroad, he requested the Information Technologies and Communications Authority (BTK) to block access.

The new law gives the CMB the authority to remove content from the internet and block access within the scope of "market distortion actions", "information abuse" and "market fraud" without a court order.
This article was considered the most controversial article of the law by the public. Türkarslan, on the other hand, considers this article as a regulatory rather than prohibitive article:

“Crypto asset platforms are positioned like other financial institutions. Just as you cannot operate as a bank or brokerage firm in Turkey without obtaining permission from the relevant institutions, you will not be able to operate as a crypto asset platform. This approach is regulatory rather than prohibitive.”

“Because a foreign-based platform operating without a license is not banned unless it targets Turkish users, which is essential for the establishment of fair competition in this regard. Regulation of the market and the sector in this way will both ensure that investors have more confidence in the sector and increase the reputation of the sector.”

Binance Turkey CEO Mücahit Dönmez states that the law draws a general framework and does not take a restrictive or prohibitive approach:

"This approach creates an environment suitable for the growth of Web3 and blockchain by recognizing the unique nature of digital assets, while ensuring compliance with global legal and regulatory standards. Rather than restricting the market, regulations will encourage sustainable growth in its ecosystem by reducing possible risks."

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