Recent Developments
The Capital Markets Board (the “Board“) announced the platforms whose declaration applications have not been considered or have been rejected in its resolution No. 47/1336 dated 23 August 2024 and published in Board bulletin No. 2024/42. You can access the announcement here.
Before the Announcement
Prior to the announcement, the Law No. 7518 on the Amendment of the Capital Markets Law entered into force upon its publication in Official Gazette No. 32590 dated 2 July 2024. On the same date, the Board published an announcement on its website, establishing the application procedure and requiring that crypto-asset service providers either wishing to continue their operations or to commence operations submit documents accompanying their declarations, pursuant to the provisional article 11 introduced to the Capital Markets Law No. 6362.
With its resolution No. i-SPK.35.B (No. 42/1259, dated 8 August 2024), the Board limited declaration applications to companies with existing clients and/or clients’ custody balances as of the application date. The Board concluded that applications from platforms that do not meet this criterion will not be considered.
The Board further announced that it will reject applications from platforms that either do not submit the information form provided by the Board or submit incomplete or insufficient explanations and documents regarding the information systems infrastructure, the processes and tools for the protection of client assets, the processes for entering transactions into the blockchain system, integrations with other internal and external systems (AML/CFT systems, reporting to public authorities, etc.), operation and reporting processes, the functioning of risk management processes and the company’s custody infrastructure.
After the Announcement
Platforms included in the lists must cease operations within five business days, stop accepting new customers, notify existing customers via email, text message, telephone and similar communication tools, and fulfill customers’ cash and/or crypto-asset transfer requests within five business days without restriction.
