The 2024 Turkish Crypto Law enters into force as of July 2, 2024. A new term has been started in Turkey about crypto assets for all legal practitioners including Turkish business lawyers and all legal practitioners are making preparations for a follow-up new term in Turkey.
Introduction
It is beyond doubt that Turkey's jurisdiction is regarded as one of the largest blockchain users across the world. There have been long-lasting discussions on law-makers' effort on the The 2024 Draft Crypto Law is Ready for the Adoption. The available article aims at providing a comprehensive discussion about recent progress for the subject matter.
See also our previous article on New Turkish Crypto Law 2024
What is the importance of FinTech?
Financial technologies (FinTech) environment has been developed very quickly over the last 20 years including in Turkey. FinTech presents significant challenges to national and international policy-makers. This paper will give a brief outline of recent preparations for new Turkish Crypto Law 2024.
For a comprehensive discussion on the FinTech Environment in Turkey, take a look at our article on FinTech Guide in Turkey
The term "FinTech" is used to refer to emerging electronic payment methodologies and systems. Indeed FinTech contains a broad range of payment models such as electronic money institutions, payment institutions, digital banks, online insurance agencies, and crowdfunding platforms and blockchain such as crypto currencies. What is really important is that the FinTech means have been developed for faster and safer financial services.
For our work and all legal services on the matter of financial technologies, please click our "Practice Areas", titled, FinTech
For more discussion for banking and finance, take a look at our article on Banking and Finance Law in Turkey
Recent Steps for the 2024 Turkish Crypto Law
In Turkey there has been a broad range of developments for the improvement of financial technologies. As a first step, the digital participation banking system is accepted by Turkish lawmakers in Turkey.
As a second step, the recognition of digital wallets has also been completed by means of new regulation of the Central Bank of the Republic of Türkiye. In this way, a Digital Wallet Era in Turkey started.
As a third step, the 2024 New Electronic Submission System for Turkish Capital Markets was instituted by the Capital Markets Board of Türkiye.
Recently, the Law Numbered 7518 on Amendments to the Capital Markets Law Numbered 6362 has been enacted. The Law Numbered 7518 is regarded as Crypto Law of Turkey and enters into force following its publication in theOfficial Gazette dated July 2, 2024.
What is the Scope of the 2024 Turkish Crypto Law?
It has been already proven that one of core intentions of Turkish law-makers was to provide full compliance of the emerging capital markets system in line with the Financial Task Force standards and principles designed for the prevention of money laundering and terrorist financing.
Take a look at our up-to-date article on the 2024 FATF Decision on Turkey
It is very significant to stress that the terms for crypto wallet, crypto asset, crypto asset storage service and crypto asset exchange platform as well as crypto assets service provider have been made in Article 1 of the 2024 Turkish Crypto Law.
It is mandatory to obtain a permission from the Board for the establishment and operation of crypto service providers. It is important to underline that the Capital Markets Board is the fundamental authority to grant licensing for the establishment and operation. Nonetheless, the Board may ask the technical support of the Scientific and Technological Research Council of Turkey (TÜBİTAK).
Operation without any permission is subject to severe administrative and criminal sanctions including three to five years imprisonment for relevant officials of the crypto asset service provider and cancellation of license for the operation.
Conclusion
Having regard to the above, it is significant to underline that the 2024 Turkish Crypto Law has brought a new landscape to the Turkish capital markets. It is not easy to forecast all outcomes now for all investment sectors and Turkish business lawyers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.