The announcement made by the CMB regarding crypto asset service providers states that, pursuant to the regulation in question, crypto asset service providers operating or intending to operate in Turkey will come under the regulatory and supervisory powers of the Board within the scope of relevant legislation.
The announcement mentioned that within the scope of the regulation are the buying, selling, liquidation and transfer of crypto assets and the necessary custody services for them, as well as the storage and management of private keys that provide the right to transfer crypto assets or from crypto assets. It states that the management of wallets related to these assets is carried out as a normal professional, commercial or professional activity, and that all kinds of circumstances are within the scope of the law, and that measures will be taken in accordance with the relevant provisions against those who do not fulfill the obligations provided for by law.
You will need to submit a declaration
The announcement noted that:
* Provisions added to Law No. 6362, Provisional Article 11, Paragraph 1, stipulates that “This applies to persons who carry out crypto asset service provider activities on the date of the enforcement of the law enacting this Article.” Submit to the Board, together with a document to be determined by the Board within one month from the effective date, a statement that they will make the necessary application under Article 35/B of the Law to apply and obtain a business license by fulfilling the conditions set out in the secondary regulations issued in accordance with the provisions of Article 35/C, or make a liquidation decision within three months without prejudice to the rights and interests of customers and not accept them new customers during the liquidation process.
※Any person who intends to start activities after the entry into force of the law providing for this article shall apply to the Board before starting activities and declare that he/she will make the necessary application to obtain an operating license by fulfilling the conditions provided for in the sub-regulations. Applications submitted to the Board within the scope of this paragraph will be announced on the Board’s website. The organization to be liquidated will announce this situation on its website and also notify its customers through email, text message, telephone and other similar communication tools. This provision is included.
*In this regard, any person who is engaged in cryptoasset service provider activities as of July 2, 2024 and intends to continue doing so in the future must submit a written declaration to the Board pursuant to paragraph 1 of the Regulation and a provisional Article 11 together with the required information, documents and explanations by August 2, 2024.
The announcement said that those who are operating as cryptocurrency business operators as of July 2, 2024 and decide to liquidate as they have no intention of continuing said activities will be required to submit a declaration of intent to liquidate and wind up, that they will not accept new customers during the liquidation process, and how they will proceed with the liquidation process, and that they will be required to submit and submit the necessary documents by August 2, 2024. They will be required to submit a statement of their plans to the CMB in writing.
In the announcement, it was said that “in this regard, without prejudice to the relevant provisions of Turkish Commercial Law No. 6102, entities that are required to make a liquidation decision in accordance with the law by October 2, 2024 will announce this situation. ” “The responsibility for the proper delivery of notices to customers lies with the entities being liquidated.”
“Operational permit required”
The announcement states that any organisation that wishes to commence activities after the effective date of the Law and before the secondary regulations issued by the Board come into force must submit a written declaration to the Board. The CMB has included the following information, along with the information, documents and explanations required before commencing activities in accordance with the first paragraph of Provisional Article 11:
*Applications to the Board will be published in two lists on the Board’s website under the “Institutions and Crypto Asset Service Providers” tab: the “Operators List” and the “Liquidation Declarants List”. The lists can be found at https://spk. gov.tr/kurumlar/kripto-varlik-hizmet-saglayicilar. If an application is incomplete or missing, it will not be listed in the “List of Operators”.
*After the secondary regulations established by the Board of Directors in accordance with the law come into effect, organizations not on this list will not be able to carry out their activities without the permission of the Board of Directors. Organizations on this list will continue their activities, but will also apply for an operating license under the conditions specified in the secondary regulations.
“Fraudulent cryptocurrency service provider”
The announcement stated that measures may be taken against those who fail to submit applications to the CMB in accordance with the specified procedures and by the specified deadlines, in accordance with the provisions of Articles 99/A and 109/A of the Law. It was noted that:
*It is useful to remember that failure of these institutions to comply with remittance requests of customers who have accounts with financial institutions that have chosen liquidation, or failure to apply to the Board within the specified period, constitutes a crime of unauthorized crypto asset service provider activity within the scope of Article 109/A, and these persons will be subject to imprisonment of 3 to 5 years and imprisonment for a term of 5,000 days.
* Article 99/A, paragraph 1 of the Law provides that “performing activities directed to Turkish residents or offering prohibited activities related to crypto assets within the scope of the Regulation to Turkish residents by a platform established abroad” will also be considered by the Board as an unauthorized crypto asset service provider. When starting a business in Turkey by a platform based abroad, creating a Turkish website, or carrying out promotional and marketing activities directly and/or through individuals and institutions resident in Turkey regarding the crypto asset services offered, such activities are carried out in such a way that they are considered to be targeted at Turkish residents.
* Additional criteria for determining whether an activity is targeted at Turkish residents may be determined by the Board. In this regard, crypto asset service providers based abroad must cease their activities towards Turkish residents as provided for in the first paragraph of Article 99/A of the Law no later than October 2, 2024. After this date, the provisions of Articles 99/A and 109/A of the Law apply to those who continue to engage in activities targeted at designated Turkish residents.
The announcement stated that the activities of ATMs and similar electronic transaction devices located in Turkey that allow customers to convert crypto assets into cash, convert cash into crypto assets or transfer crypto assets should be terminated by October 2, 2024. It was stated that the provisions of Laws 99/A and 109/A apply to those who provide the opportunities.
