The Capital Markets Board (SPK) has unveiled new regulations that will bring significant changes to cryptocurrency exchanges in Turkey. These updates to Law No. 7518 aim to enhance the protection of investors and improve the transparency of crypto platforms. According to The Bit Journal, these changes will impact everything from how platforms operate to how customer assets are protected.
Customer Security Takes Center Stage in New Crypto Regulations
One of the key aspects of the new SPK regulations is the protection of customers’ cash assets. Platforms will now be required to store client funds exclusively in bank accounts, separating them from the platform’s own assets. Each account must be clearly identified as belonging to specific clients, and no cash transactions can be processed outside authorized institutions. This move is designed to strengthen customer security and minimize fraud risks.
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Under the new regulations, cryptocurrency platforms must accept orders only through their official websites or mobile apps. Social media platforms are strictly prohibited as a medium for placing orders. Additionally, all orders must be securely recorded in a manner that prevents tampering. This is another step aimed at increasing investor protection and reducing risks.
Restrictions on Buying and Selling Cryptocurrencies
The new rules also introduce limitations on buying and selling cryptocurrencies through unauthorized outlets, such as currency exchanges. Any such activities will be deemed unauthorized crypto asset service provision, and platforms have until November 8, 2024, to cease such operations. Violators face severe penalties. However, NFTs and in-game assets are exempt from these rules, but platforms handling them must still notify the SPK.
Platform Transparency and Disclosure Obligations
Transparency is another focus of the SPK’s new regulations. Platforms are now required to disclose to their customers whether the assets being traded are under SPK supervision. If they are not, platforms must explicitly inform their clients and confirm their understanding before transactions take place.
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Furthermore, platforms are prohibited from making misleading promises about guaranteed returns or using deceptive advertising tactics. They have 15 days to remove such misleading campaigns. This aims to prevent platforms from exploiting the lack of knowledge among investors.
New Rules for Liquidity Providers and P2P Marketplaces
The new regulations also cover liquidity providers and peer-to-peer (P2P) marketplaces. While liquidity providers are exempt from certain platform regulations if they don’t serve investors directly, P2P platforms providing unauthorized crypto asset services must also shut down by November 8, 2024.
According to The Bit Journal, the SPK has been focusing on regulatory measures for some time, and these changes aim to create a more transparent, reliable, and compliant environment in the cryptocurrency market. The overarching goal is to protect investors and strengthen market regulations.
