The Capital Markets Board Announced Principle Decision on Crypto Asset Platforms
Law No. 7518 on the Amendment to the Capital Markets Law (Crypto Assets Law) added Article 35/B titled “Provisions regarding crypto asset service providers and crypto assets” to the Capital Markets Law No. 6362 (CML) and authorized the Capital Markets Board (Board) to determine the principles and procedures regarding the establishment, partners, managers, and capital of crypto asset platforms, among other matters. Please find the legal alert we have prepared on the issue here.
With its Principle Decision dated 08.08.2024 and numbered 42/1259 (Board Decision), the Board determined the principles and procedures for establishment applications to ensure that the financial structures of crypto asset platforms are strong enough to adequately invest in IT infrastructure and cover potential risks.
Significant issues in the Board Decision are summarized below:
- Establishment conditions for crypto asset platforms regarding the type of company, capital amount, nature of shares, title, number of board members, and partnership structure were determined.
- Regarding the founders, shareholders, and shareholders of the legal entity shareholders of these platforms who directly or indirectly hold shares representing ten percent or more of the capital or voting rights, and those who hold privileged shares that give them the right to be represented in the board of directors, even if they are below this percentage, conditions such as not being bankrupt, not holding shares in certain institutions whose operating licenses have been revoked except for voluntary liquidation, not having convictions for certain crimes, including disgraceful crimes, and the requirement that these persons must have certain qualifications and competencies have been introduced.
- Founders were required to apply to the Board for establishment procedures with their articles of association, documents showing that they and their executives meet the prescribed conditions, and the documents and forms in Annex-1 and Annex-2.
- It was regulated that companies that have obtained an establishment permit shall also apply to the Board for an operating license.
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