We are witnessing the rapid transformation of the global financial sector after the pandemic. Crypto assets are also among the leading actors of this transformation. In order to keep up with this transformation, many countries of the world are accelerating their infrastructure work and enacting some laws for crypto assets to be included in the system. The Bill on Amendments to the Capital Markets Law, which contains regulations regarding crypto assets, which has been much discussed in our country for a while and has been eagerly awaited, was accepted by the Grand National Assembly of Turkey Planning and Budget Commission. With the proposal, definitions regarding crypto assets are added to the Capital Markets Law. Thus, the crypto asset regulations added to the Capital Markets Law aim to make the market more transparent, secure and sustainable.

With the new regulations, definitions were introduced for crypto assets and services for these assets. For example, “wallet” was defined as software, hardware, or systems that enable the transfer and storage of crypto assets. This development aims to provide the necessary infrastructure for users to securely store and transfer their crypto assets. “Crypto assets” are defined as intangible assets that can be created and stored using distributed ledger technology or a similar technology, distributed over digital networks, and that can express value or rights. This definition makes it clearer what crypto assets are and how they work.

It is mandatory to obtain a license from CMB

The definition of “crypto asset service provider” was also included in the regulations. This term covers crypto-asset platforms, crypto-asset custodians and other organizations designated by relevant regulations to provide services related to crypto-assets. These service providers are required to obtain permission from the Capital Markets Board (CMB) to start their activities. These organizations will be obliged to safely store their customers' crypto assets, carry out their transfers and make the necessary arrangements in these processes.

The new regulations also determine the principles for accepting crypto assets as capital market instruments. CMB will be able to determine the principles for the export of capital market instruments as crypto assets without being included in the Central Registry Agency (CRA) system. With this regulation, the processes of issuance, creation and storage of crypto assets will be made more transparent and orderly. This will increase investors' confidence in crypto assets and bring more stability to the market. Platforms will have to establish written listing procedures to identify crypto assets to be traded or to be first sold or distributed, and to finalize their trading. These procedures may also include technical criteria. Additionally, platforms will be obliged to establish internal mechanisms to effectively resolve their customers' objections and complaints. These regulations will increase investor confidence.

Abuse will be prevented

The activities of crypto asset service providers will be regularly inspected by the CMB. In these audits, factors such as the security of information systems and technological infrastructures, the competence of the personnel and service quality will be evaluated. Service providers will need to take the necessary precautions to safely store and transfer their customers' assets. Such audits are of great importance to prevent possible abuses in the market and to protect the rights of investors.

The new regulations include various measures to ensure that crypto asset service providers have strong financial structures and can fulfill their financial obligations. Service providers will be asked to strengthen their financial structures by applying to the CMB if their financial structures weaken. During this process, measures such as temporarily stopping the activities of service providers or removing their authorization may be taken. These measures are critical to ensure confidence and stability in the market.

A safe and transparent environment will be created

Regulations for crypto asset trading and storage will create a safer and more transparent environment for market participants. Platforms will encourage their customers to store their assets in their own wallets and take the necessary security measures. In addition, providing the necessary infrastructure for customers to convert or transfer their crypto assets into cash will increase the liquidity and transaction volumes of the market.

Regulations regarding crypto assets in Turkey will contribute to the market reaching a more mature and sustainable structure and can be an example for many countries. The new regulations aim to protect the rights of investors, increase confidence in the market and make crypto assets reach wider audiences. These developments can be considered as an important turning point in the cryptocurrency market. Creating a safer and more regulated environment for investors will enable greater acceptance and adoption of crypto assets in the future. This new era in the market is expected to make positive contributions to the development of crypto assets and blockchain technology.#btc $BTC