Capital Markets Board Decision Regarding Crypto Assets

The Capital Markets Board (CMB) published the Decision No. i-SPK.35.B.1 (dated 19/09/2024 and numbered 1484) (Decision) with the Capital Markets Board Bulletin published on 19.09.2024.

Decision regulates the listing of crypto-assets and advertising and announcements of the platforms, to prevent negative circumstances such different examples in receiving and storing customer cash, receiving customer orders via social media, etc.

The important issues and innovations envisaged by the Decision are summarized below:

• According to the relevant articles of the Capital Markets Law, there is an obligation to keep the cash belonging to the customers in banks, and regulations are stipulated regarding the accounts to be opened in the name of the customers on the principle that these cash and crypto assets should be recorded separately from the assets of the crypto asset service providers and that customer cash should be monitored in separate accounts separate from the platform's own money.
• The Decision stipulates that cash transfers of the customers must be made through banks or authorized institutions in this regard.
• It was determined that all customer orders must be received through the platforms’ websites, mobile applications, and registered phones notified to the CMB, and some requirements were stipulated to keep the records of orders secure. It was emphasized that trading with environments and methods contrary to these principles will be considered as unauthorized crypto asset service provider activity and penalties may be imposed accordingly.
• Non-fungible tokens (NFT) and crypto assets used to create or provide virtual game elements are excluded from the listing principles, and platforms will notify the CMB if they process such assets.
• It was regulated that platforms must be objective regarding the services they are authorized to offer, they cannot commit regarding absolute return or guarantee against loss, and they cannot advertise that they will provide benefits to customers who bring customers to the platform.
• It is stipulated that platforms may not carry out lending crypto asset transactions, transactions that will result in lending to the customer, and leveraged transactions.