New Crypto Law Aims to Close Legal Gaps and Protect Investors in the Booming Crypto Market
In a significant move for the burgeoning cryptocurrency market, Turkiye’s Grand National Assembly has passed a bill introducing comprehensive regulations for crypto assets. The new legislation, which amends the Capital Markets Law, addresses the legal voids that have left investors vulnerable in recent years.
Empowering the Capital Markets Board (SPK)
Under the new law, the Capital Markets Board (SPK) has been granted extensive authority. Service providers in the crypto space are now required to meet capital requirements, ensuring both investor protection and the imposition of sanctions on service providers. The law also stipulates how relationships with crypto users should be established and mandates identity verification procedures.
Mandatory Licensing and Oversight
Service providers and their operations must now obtain authorization from the SPK. This includes the issuance, sale, and distribution of crypto assets, with all transfer transactions to be recorded. The new law aims to ensure that only platforms meeting specific conditions will be authorized, and banks will need to acquire custody licenses.
Market Integrity and Investor Protection
With approximately 12 million active accounts in the capital markets, the new regulations are poised to significantly impact the landscape. The legislation includes penalties for market manipulation and abusive practices, with administrative fines ranging from 246,000 to ₺6 million.
The new regulatory framework is expected to bring much-needed oversight to Turkiye’s rapidly expanding crypto market, enhancing investor confidence and market stability.
Source: Trthaber / Prepared by Irem Yildiz