Turkiye Becomes a “Safe Harbor” for Crypto Assets with New Legislation

The Newly Enacted Law on Crypto Assets Promises Enhanced Security and Regulation

With the publication of the “Law Amending the Capital Markets Law” in the Official Gazette, Turkiye has positioned itself as a “safe harbor” for crypto assets, according to lawyer Busra Altunay. She emphasized that the new regulations, which recently came into effect, aim to prevent numerous grievances related to crypto assets.

Altunay, who has been working on various reports and studies for this legislation over the past three years, highlighted the importance of supporting and controlling the technology rather than banning it. She noted that the final draft of the law, published in the Official Gazette, was shaped through extensive consultations with stakeholders in the ecosystem.

“This law wasn’t created at a desk; it required insights from those involved in the industry,” Altunay stated, underscoring the importance of contributions from industry professionals in crafting the legislation. She added, “Turkiye is now recognized for having advanced regulations when viewed from a global perspective.”

The new law marks a significant advancement in Turkiye’s regulatory landscape for crypto assets. Prior to this, the sector lacked any substantial regulation, despite the large budget involved. Altunay pointed out that the regulation supports technological development, rather than restricting it.

One key provision of the law is the allocation of 1% of the revenues from crypto asset service providers to TUBITAK, Turkiye’s leading technology institution. Altunay emphasized the critical role TUBITAK will play as a technology auditor, ensuring safe and reliable services for all parties involved in crypto transactions.

Looking ahead, Altunay noted that the law will make it difficult for new crypto asset trading platforms to be established quickly, which will help mitigate potential fraud and ensure that only well-regulated entities operate in the market. Existing foreign-based crypto asset service providers must cease their operations in Turkiye within three months unless they establish a local entity and comply with Turkish regulations.

Furthermore, Altunay mentioned that existing crypto asset service providers have three months to notify the Capital Markets Board (SPK) if they plan to enter liquidation, and one month to declare their intention to continue operations under the new regulatory framework. The SPK will issue secondary regulations within six months to detail the licensing processes and requirements.

Altunay concluded by expressing confidence in Turkiye’s future as a leading country in the crypto asset space, stating, “We are technologically strong and globally recognized. With this law, we have become a safe harbor, moving out of the grey list, which will foster a robust ecosystem and economy. We must seize this opportunity.”

Source: Trthaber / Prepared by Irem Yildiz

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