Regarding crypto assets, secondary legislation was expected for some time, to regulate in detail particularly licensing, application processes, requirements for executives and employees, and corporate structure. As of March 13, 2025, the following secondary legislation have been published in the Official Gazette:
1. Communiqué on the Establishment and Operational Principles of Crypto Asset Service Providers (III-35/B.1)
2. Communiqué on the Working Procedures, Principles, and Capital Adequacy of Crypto Asset Service Providers (III-35/B.2)
3. Communiqué Amending the Communiqué on Independent Audit of Information Systems (III-62.2.b)
4. Communiqué on the Procedures and Principles for Information Systems Management (VII-128.10)
Prior to this set of secondary legislation, in July 2024, a law amending the Capital Markets Law (CML) had been published and come into effect, establishing the regulatory framework for Crypto Asset Service Providers (CASPs). This law outlined the requirements for CASPs, as well as the conditions for their founders, shareholders, and executives. Following this, the Capital Markets Board (CMB) had issued principle decisions that set rules for crypto asset transactions, customer asset custody, order reception channels, order procedures, and promotional campaign restrictions. Further amendments to the Financial Crimes Investigation Board’s regulations had then introduced additional obligations, including adherence to the travel rule and the implementation of a compliance program.
The new communiqués introduce comprehensive regulations regarding the establishment, authorization, operations, and obligations of crypto asset service providers. They also cover the management and auditing of information systems used by entities operating in the capital markets. Some of the key changes introduced by these communiqués are:
• Establishment Requirements and Licensing Procedures: The communiqués provide detailed provisions on the establishment and licensing of CASPs, outlining the necessary supporting documents and compliance requirements for entities wishing to operate as CASPs. They also set security infrastructure standards for these entities and establish operational requirements for platforms.
• Corporate Governance and Organizational Structure: Stricter corporate governance and organizational structure requirements have been imposed, including provisions for conflict of interest management, internal controls, audits, and risk management procedures. The qualifications and criteria for employees have also been specified, with general managers and deputy general managers required to have at least seven years of professional experience and CMB approval. Independent auditing is now mandatory.
• Capital Adequacy and Liquidity Requirements: To strengthen sector security, the regulations introduce strict capital adequacy and liquidity requirements. The minimum capital requirement is set at 150,000,000 TL for exchanges and 500,000,000 TL for custody providers. If the total customer assets do not exceed 1,000,000,000 TL, no additional equity capital is needed. However, for any excess beyond this threshold, firms must maintain additional equity capital equal to 1.5% of the excess amount, in addition to their initial capital. If equity capital exceeds 1,500,000,000 TL, no additional capital is required, but the initial capital requirement must still be met.
• Customer Relations and Compliance Obligations: The regulations require CASPs to implement Know Your Customer (KYC) procedures, disclose risk information, and outline framework agreement obligations. CASPs must disclose company-related information on the Public Disclosure Platform and their websites, including details on listed crypto assets, listing procedures, transfer policies, and order execution procedures.
• Changes in Shareholding Structure and Investment Restrictions: Changes in the shareholding structure must receive prior approval, and share transfers involving a 10% or higher acquisition of share capital or voting rights must be authorized by the CMB. Similarly, restrictions have been placed on CASPs regarding investments in other companies.
• Advertising and Promotional Restrictions: Strict limitations on advertisements, announcements, and promotional campaigns by CASPs have been introduced.
• Outsourcing, Record-Keeping, and Prohibited Activities: The regulations define permitted and prohibited activities for CASPs, along with requirements for outsourcing and record-keeping.
• Regulation of Crypto Asset Transactions and Custody Services: The regulations outline rules for trading, exchanging, transferring, and storing crypto assets. They also define listing and delisting procedures for crypto assets on platforms.
• Platform Transition and Liquidation: Platforms that have submitted establishment applications under the CMB’s Principle Decision i-SPK.35.B (dated 08/08/2024, Decision No. 42/1259) and are listed in the “Operating Platforms List” as of the publication date of this communiqué, as well as those who applied prior to this date, will have their applications assessed based on the provisions of the communiqué, excluding capital requirements. Liquidated entities must cease platform activities within 15 days, stop new sales and listings, and discontinue accepting new customers. They must also facilitate existing customers in converting crypto assets to cash and process withdrawal or transfer requests promptly, ensuring customer rights are protected.
These regulations represent a significant step towards establishing a secure and structured framework for crypto asset service providers in Türkiye. They regulate the crypto market in substantial detail.
If you have any questions about this Article or need any assistance regarding your activities in the sector, please don’t hesitate to contact the Durukan+Partners team.
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