A Step-by-Step Guide for Complying with new Turkish Crypto Regulation

A Step-by-Step Guide

In this article, we explore the essential steps necessary for successfully entering and operating within Turkey’s regulated crypto market under the new framework set by the Capital Markets Board of Turkey (SPK). Below is a structured outline designed to ensure full compliance and facilitate a smooth market entry:

1. Regulatory Foundations: Acquaint yourself with the Capital Markets Law No. 6362 and the recent amendments governing crypto exchanges. A thorough understanding of this legal framework is crucial for compliance.

2. Legal Structure Requirements: Establish your exchange as a joint stock company (A.Ş.), in accordance with Turkish law, ensuring that all foundational legal structures are correctly implemented from the beginning.

3. Capital Requirement: Secure a minimum of 50 million TL in cash to fulfil the capital requirements, thereby demonstrating the financial stability and preparedness of your exchange.

4. Governance: Appoint a board of directors consisting of at least three members who satisfy the financial and professional criteria established by the SPK. Ensure that your governance framework is fully aligned with SPK’s expectations.

5. Document Compliance: Prepare and submit comprehensive documentation, including identity verification, criminal records, detailed descriptions of your company’s structure, and custody infrastructure, to the SPK.

6. AML and KYC Obligations: Ensure that your platform is fully compliant with Turkey’s Anti-Money Laundering (AML) laws and Know Your Customer (KYC) requirements. This includes establishing robust internal controls and reporting mechanisms.

7. Custody and Security Measures: Implement secure custody solutions for crypto assets, adhering to the technical and operational standards required by Turkish law, including compliance with TÜBİTAK guidelines.

8. Trade Name Registration: Ensure that your company’s trade name includes “crypto asset trading platform,” as mandated by the SPK.

9. Ongoing Compliance: Regularly update your risk management and audit processes to maintain continuous alignment with evolving SPK regulations and any subsequent amendments.

10. Critical Deadlines: Existing exchanges must achieve full compliance by 8th November 2024. This includes the submission of all necessary documentation and strict adherence to SPK’s operational guidelines.

🔑 Regulatory Milestones:

• Legal Framework: Crypto exchanges must conform to the newly amended Capital Markets Law, which is specifically designed to govern digital assets.
• Governance and Structure: Establish your exchange as a joint stock company with a clear focus on crypto asset trading.
• Compliance Obligations: Pay close attention to AML, KYC, and reporting standards, ensuring all operations are in strict accordance with Turkish regulatory requirements.

To find out more about the new regulation please contact us info@guden.av.tr