Türkiye Passes Amendment to Capital Markets Law to Introduce Crypto-Asset Regulations

The Turkish parliament has passed a revised Capital Markets Law, introducing new regulations on cryptocurrency assets, including: 1. The Capital Markets Board (SPK) now has the authority to oversee cryptocurrency transactions and "take measures and sanctions," such as freezing and confiscating funds. Platforms must establish written listing procedures to determine which crypto assets will be traded or offered and distributed for the first time, and comply with SPK principles and regulations. 2. Individuals and legal entities operating unauthorized cryptocurrency services will face 3 to 5 years imprisonment; service providers who misappropriate entrusted funds or assets, including cryptocurrency, will face 8 to 14 years imprisonment and compensate for losses; if the crime involves fraud to conceal embezzlement of public funds, the offender will face 14 to 20 years imprisonment; individuals found to have illegally used the resources of a revoked cryptocurrency service provider for personal or third-party gain will face 12 to 22 years imprisonment. 3. Platform prices will be freely determined, and monitoring systems must be established and all preventive measures taken to detect, prevent, and avoid market disruption. Platforms should identify and report disruptive market behavior and transactions, take necessary measures such as restrictions, suspensions, and closing of involved accounts, and report to SPK. 4. SPK will develop investment advisory and portfolio management regulations related to cryptocurrency assets, and issue authorization certificates to cryptocurrency service providers to conduct their activities. Banks will need approval from the Banking Regulation and Supervision Agency (BDDK).