The 2024 Announcement for the Rejected Crypto Asset Platforms has been newly made by the Capital Markets Board (hereinafter as the Board) dated 23 August 2024. That decision was published in the Board Bulletin No: 2024/42.
Introduction
The 2024 Turkish Crypto Law is in effect as of July 2, 2024. A new term was started after the adoption of the Law Numbered 7518 "known as the Turkish Crypto Law" revising the Capital Markets Law Numbered 6362 as of July 2, 2024. All legal practitioners including Turkish business lawyers have focused on main features of crypto asset platforms and upcoming benchmarks and standards by the Board. This article will present a useful summary of the recent Board decision on the 2024 Announcement for the Rejected Crypto Asset Platforms.
What is the meaning of Financial Technologies?
Financial technologies (FinTech) environment has improved very quickly over the last 20 years across the globe. The term "FinTech" is used to refer to emerging electronic payment methodologies and systems such as electronic money institutions, payment institutions, digital banks, online insurance agencies, and crowdfunding platforms and blockchain such as crypto currencies. It is very significant to underscore at this juncture that the terms for crypto wallet, crypto asset, crypto asset storage service and crypto asset exchange platform as well as crypto assets service provider were made in Article 1 of the Law Numbered 7518. It is mandatory to obtain a permission from the Board for the establishment and operation of crypto service providers.
For our work and all legal services on the matter of financial technologies, please click our "Practice Areas", titled, FinTech
For a comprehensive discussion on the FinTech Environment in Turkey, take a look at our article on FinTech Guide in Turkey
For more discussion for the importance of FinTech for banking and finance, take a look at our article on Banking and Finance Law in Turkey
What is the news for the 2024 Announcement for the Rejected Crypto Asset Platforms?
There is recent progress on the 2024 Announcement for the Rejected Crypto Asset Platforms. The Board announced its decision for the list of crypto platforms whose declaration applications have not been considered or have been directly rejected. The announcement is available in Board Bulletin 2024/42. The applications of 32 crypto providers have been removed from processing on the grounds of incomplete or insufficient submission of the requested explanations and documents. The applications of 32 more crypto asset platforms have not been processed on the grounds of the lack of any customers and/or customer storage balances as of the application date.
See also our previous article on New Turkish Crypto Law 2024
Recent Progress for the 2024 Turkish Crypto Business Environment in Turkey
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.
Turkish policy-makers took a commitment of the 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. Therefore, fourthly, 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.
Take a look at our up-to-date article on the 2024 FATF Decision on Turkey
Fiftly, the first decision on the 2024 Announcement for the Rejected Crypto Asset Platforms has been delivered by the Board dated 23 August 2024.
Conclusion
Considering the above, it is critical to outline that the Board is granted a wide margin of appreciation and authority to manage crypto asset regime. Totally 64 application processes were stopped by the Board because of the lack of necessary requirements in the 2024 Announcement for the Rejected Crypto Asset Platforms. Undoubtedly, investment advice through the comprehensive assistance of Turkish business lawyers is seen as a considerable component of FinTech crypto investors in Turkey.
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.