Crypto Currency Regulations from the CMB: New Rules on the Way!

The Capital Markets Board (CMB) has announced new regulations that bring radical changes to cryptocurrency exchanges. These updates in Law No. 7518 cover a wide range from the operation of crypto platforms to the protection of customer rights. With these regulations, the CMB aims to enhance investor protection and increase the transparency level of platforms.

Customer Security at the Forefront in New Cryptocurrency Regulations

The new regulations of the CMB include important changes to protect customers' cash assets. According to the new regulation, platforms will only keep customer cash in banks. In addition, these funds will be kept separate from the platform's own assets. Platforms must clearly identify accounts opened on behalf of customers. Furthermore, they must manage the funds by clearly stating that they belong only to the relevant customers. Customer cash cannot be obtained or delivered outside authorized institutions.

With these regulations, crypto asset platforms will only receive customer orders via their own declared websites or mobile applications. Receiving orders via social media platforms is completely prohibited. All received orders must be recorded securely and immutably. These steps aim to increase customer security and reduce fraud risks.

Restrictions on Cryptocurrency Trading

New regulations also impose restrictions on the buying and selling of cryptocurrencies through currency exchange offices or similar structures. These transactions will be considered as unauthorized cryptocurrency asset service providers. In addition, such activities must be terminated by November 8, 2024. Platforms conducting these transactions without legal permission will face serious sanctions.

However, NFTs and in-game assets are exempt from this regulation. Different rules will apply to unique crypto assets and digital assets used only in games. Platforms processing these assets will be exempt from the supervision of the CMB. However, notification to the CMB will still be required when dealing with these assets.

Platform Transparency and Information Obligation

The new regulations introduced by the CMB aim to increase the transparency of cryptocurrency platforms. Platforms are required to clearly state whether the assets they trade are under the supervision of the CMB. If a platform is trading assets that are outside the jurisdiction of the CMB, it must disclose this information to customers and confirm that they understand this before conducting transactions.

In addition, the customer information obligation of the platforms has also been strengthened. Platforms cannot make misleading advertisements and campaigns for crypto asset transactions. Platforms cannot make misleading promises such as definite return guarantee or loss guarantee by exploiting the ignorance of investors. It has become mandatory to terminate such campaigns within 15 days.

Liquidity Providers and P2P Marketplaces

The new regulations introduced for the trading of cryptocurrencies also cover liquidity providers and peer-to-peer (P2P) marketplaces. If liquidity providers do not directly serve investors, they will not be considered as platform activities. However, peer-to-peer digital marketplaces providing unauthorized cryptocurrency asset services will also need to cease operations by November 8, 2024.

As we reported at Kriptokoin.com, the CMB has been focusing on regulatory issues for some time. These regulations aim to create a more transparent, reliable, and compliant environment in the cryptocurrency market. In addition, the CMB aims to protect investors and strengthen market regulations with these changes.

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