In a significant move to regulate the cryptocurrency market, Turkey’s Capital Markets Board (CMB) has issued an update on crypto asset service providers operating in the country. The announcement, made last week, clarifies the status of these providers following the enactment of the “Law on Amendments to the Capital Markets Law” on July 2.
Provisional Lists: Operational Companies and Those Planning to Liquidate
The CMB has published two provisional lists of crypto asset service providers. The first list includes 47 entities that have submitted applications to the regulator and are currently operating under the Capital Markets Law. These companies are active in the financial technology sector and include prominent crypto exchanges such as Bitfinex, Binance Turkey, Btcturk, and Okx.
However, the CMB has emphasized that being on this list does not imply official authorization under the relevant laws. Instead, it merely indicates that these companies have submitted applications and are awaiting further evaluation.
The second list includes three companies that have declared their intention to liquidate. Notably, institutions lacking complete information or under ongoing investigation are not considered operational and are therefore not listed.
New Regulations and Deadlines
The CMB’s announcement outlines new regulations for crypto asset service providers in Turkey. Effective July 2, these providers must comply with regulations set by the regulator. Those already operating as of this date have two options:
- Apply for an operating permit within one month: Providers must submit their applications to the CMB within a month of the law’s enactment.
- Decide to liquidate within three months: Providers must cease to accept new customers and begin the liquidation process within three months.
Failure to comply with these regulations may result in penalties, including imprisonment and fines.
Foreign-Based Providers and ATMs
Foreign-based providers targeting Turkish residents must terminate their activities by October 2. ATMs and similar devices facilitating crypto transactions must also cease operations by this deadline. Noncompliance with these regulations will result in legal action under Articles 99/A and 109/A of the amended law.
What This Means for Turkey’s Crypto Market
The CMB’s announcement marks a significant step towards regulating Turkey’s crypto market. By setting clear guidelines and deadlines, the regulator aims to ensure that crypto asset service providers operate in a transparent and compliant manner.
As the crypto landscape continues to evolve, it is essential for service providers to stay informed about regulatory changes and adapt to new requirements. Failure to comply with these regulations may result in severe consequences, including penalties and reputational damage.
Key Takeaways:
- 47 crypto asset service providers have submitted applications to the CMB and are operational under the Capital Markets Law.
- Three companies have declared their intention to liquidate.
- Providers must apply for an operating permit or decide to liquidate within specified deadlines.
- Foreign-based providers targeting Turkish residents must terminate their activities by October 2.
- ATMs and similar devices facilitating crypto transactions must cease operations by October 2.
What do you think about the new regulations in Turkey? Share your thoughts in the comments below!
