New SPK Decision on Crypto Assets: A Comprehensive Overview of Regulatory Amendments
With the enactment of Law No. 7518, which introduces amendments to the Capital Markets Law No. 6362, the Capital Markets Board (SPK) issued several key regulatory changes aimed at addressing customer asset management, crypto asset transactions, and compliance obligations. This article explores the essential aspects of the SPK’s new principle decision i-SPK.35.B.1 (dated 19/09/2024, No. 1484) and how it impacts the crypto asset sector in Turkey.
1. Handling Customer Cash and Records for Crypto Assets
Under the amended legislation, platforms managing customer cash are required to ensure that customer funds are held in bank accounts and are entirely separate from the platform’s own assets. Furthermore, all transactions involving crypto assets, including purchasing, selling, and transferring, must adhere to strict recording and reporting standards. Notably, from November 8, 2024, any orders received via phone must be accompanied by unalterable audio recordings and logs with timestamps to preserve the integrity of records.
2. Limitations on Peer-to-Peer Crypto Marketplaces
Peer-to-peer (P2P) digital marketplaces allowing direct transactions between users will now be subject to tighter regulations. These platforms must cease operations involving crypto asset trading unless properly licensed under Law No. 99/A. The deadline to comply or exit the market is November 8, 2024.
3. Exclusions for NFTs and Certain Crypto Assets
The decision clarifies that specific crypto assets, such as non-fungible tokens (NFTs) and those used exclusively within virtual games, are exempt from listing requirements under Law No. 35/C. However, platforms facilitating transactions involving these assets must notify the SPK and ensure that they are traded in separate markets with clear disclaimers to investors.
4. Promotion and Marketing Restrictions
Platforms offering crypto services are prohibited from running promotional campaigns that promise guaranteed returns or incentivize customers with benefits. Misleading advertisements exploiting users’ lack of experience or knowledge are strictly forbidden. Platforms must maintain transparency and objectivity in all forms of communication, from written materials to digital platforms.
5. Mandatory System Integration with MKK
Another key requirement is the mandatory integration of platforms with the Central Securities Depository (MKK). Platforms must meet technical infrastructure standards set by the MKK and complete the integration process within the designated timeframe.
6. Wallet Control and Custody Obligations
By November 8, 2024, platforms must have full control over the wallets where customer crypto assets are stored. Any non-compliant practices will be considered violations under Law No. 110/A.
Conclusion
These amendments reflect the SPK’s commitment to establishing a transparent and secure environment for crypto asset trading in Turkey. The introduction of stringent requirements for customer asset management, record-keeping, and market integrity signals a move towards greater regulation in the rapidly evolving crypto sector.