Crypto Assets Regulation In Turkey

Full text of crypto regulation submitted to the Turkish Grand National Assembly (TGNA) Regarding Amendments to the Capital Markets Law No. 6362

ARTICLE 1 – The following clauses have been added to Article 3 of the Capital Markets Law No. 6362 dated 6/12/2012:

“aa) Wallet: Software, hardware, systems, or applications that enable the transfer of crypto assets and the storage of these assets or the private and public keys related to these assets either online or offline,

bb) Crypto asset: Intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and can represent value or rights,

cc) Crypto asset service provider: Platforms, institutions providing crypto asset custody services, and other institutions designated to provide services related to crypto assets, including their initial sale or distribution, in regulations to be made based on this Law,

çç) Crypto asset custody service: The storage, management, or other custody services determined by the Board for the crypto assets of platform customers or the private keys that provide transfer rights from the wallet related to these assets,

dd) Platform: Institutions where one or more of the activities of trading, initial sale or distribution, clearing, transfer of crypto assets, the necessary custody, and other transactions that may be determined are carried out,

ee) TÜBİTAK: The Scientific and Technological Research Council of Turkey,”

ARTICLE 2 – The following sentences have been added to the first paragraph of Article 13 of Law No. 6362:

“The Board may set principles for the issuance of capital market instruments as crypto assets and their tracking in electronic environments provided by service providers instead of being issued in book-entry form and tracked by the Central Securities Depository (CSD). In the case of issuance of capital market instruments as crypto assets, the records in the electronic environment where they are created and stored shall be taken as the basis for the enforcement of rights, their assertion against third parties, and their transfer. The Board may require integration between the records in this electronic environment and the CSD system. The procedures and principles for the implementation of this paragraph shall be determined by the Board.”

ARTICLE 3 – The following article has been added after Article 35/A of Law No. 6362:

Provisions on Crypto Asset Service Providers and Crypto Assets

ARTICLE 35/B

1. It is mandatory to obtain permission from the Board for the establishment and commencement of activities of crypto asset service providers, and they exclusively perform the activities determined by the Board. The principles regarding their establishment, commencement of activities, partners, managers, personnel, organization, capital, capital adequacy, obligations, information systems and technological infrastructure, share transfers, permissible activities, temporary or permanent suspension of activities, and other principles and rules they must comply with during their operations are determined by the Board. Obtaining Board approval for share transfers is mandatory. Transfers made contrary to the regulations under this paragraph shall not be registered in the share ledger, and any registration made in violation of this provision shall be invalid.

2. Crypto asset service providers are obliged to make the necessary arrangements, take precautions, and establish the necessary internal control units and systems to manage their systems securely. To grant permission for the establishment and/or commencement of activities of crypto asset service providers, compliance with the criteria to be determined by TÜBİTAK regarding information systems and technological infrastructure is required.

3. (a) The partners of crypto asset service providers must:

    1. Not be bankrupt or have declared concordat, not have their restructuring by reconciliation application approved, or not have a decision on postponement of bankruptcy under Law No. 2004 or other regulations,

    2. Not have direct or indirect ownership of 10% or more shares or control in banks under liquidation, factoring, financial leasing, financing, savings finance, asset management, insurance, reinsurance, pension companies, and payment system operators, payment service providers, or institutions operating in money and capital markets whose operating licenses have been revoked except for voluntary liquidation,

    3. Not have been convicted, even if pardoned, of infamous crimes such as embezzlement, corruption, bribery, theft, fraud, forgery, breach of trust, fraudulent bankruptcy, and other crimes excluding smuggling other than consumption and usage smuggling, bid rigging, obstruction of fulfillment of duties, obstruction of the operation of information systems, deletion or alteration of data, misuse of bank or credit cards, laundering of assets derived from crime, financing of terrorism, or crimes listed in Article 5 of the Law No. 7262 on the Prevention of the Financing of the Proliferation of Weapons of Mass Destruction, crimes against the personality of the State, crimes against State sovereignty and its organs, crimes against State security, crimes against the constitutional order and its operation, crimes against national defense, crimes related to disclosing State secrets, espionage, crimes against relations with foreign states, crimes within the scope of Law No. 3713 on Counter-Terrorism, tax evasion or participation in such crimes, not sentenced to imprisonment for five years or more for a deliberately committed crime, or not having a final conviction for crimes written in this Law,

    4. Not be subject to transaction bans under subparagraph (a) of the first paragraph of Article 101 of this Law,

    5. Have the necessary financial strength and the honesty and reputation required for the business,

    6. Have a transparent and clear partnership structure,

(b) Members of the board of directors and those authorized to represent the crypto asset service provider without being a member of the board must meet the requirements specified for partners, except for the financial strength condition.

(c) Individuals who have the right to receive more than half of the distributable profit alone or have the right to be represented by selecting or nominating more than half of the board members under the company’s articles of association must meet the conditions specified in subparagraph (a).

(ç) Legal entity founding partners of the crypto asset service provider that represent 10% or more of the capital or voting rights directly or indirectly, or that hold privileged shares granting the right to be represented on the board of directors even if below this ratio, must also meet the conditions specified in subparagraph (a). In changes to the partnership structure after the establishment, legal entity partners representing 10% or more of the capital or voting rights directly or indirectly or holding privileged shares granting the right to be represented on the board of directors even if below this ratio, and partners of these legal entities must also meet the conditions specified in subparagraph (a).

(d) If partners representing 10% or more of the capital or voting rights of the crypto asset service provider directly or indirectly, or those holding privileged shares granting the right to be represented on the board of directors even if below this ratio, and those specified in subparagraph (ç) lose the qualifications specified in subparagraph (a), except for subparagraph (5) of subparagraph (a), they must transfer their shares to persons meeting the conditions specified in subparagraph (a) within six months. The use of voting rights attached to these shares and by whom and how they will be used during this period is determined by the Board.

4. The procedures and principles regarding the trading, initial sale, distribution, clearing, transfer, and custody of crypto assets through platforms are regulated by the Board.

5. Crypto asset service providers are not subject to the other provisions of this Law except for the referenced provisions. The Board is authorized to regulate and direct the application by issuing regulatory transactions and special decisions regarding the matters not regulated in Articles 35/B, 35/C, and 99/B of this Law or where guidance in application is required within the scope of the second paragraph of Article 128 of this Law. For regulations imposing obligations on banks under Articles 35/B, 35/C, and 99/B of this Law, the opinion of the Banking Regulation and Supervision Agency is obtained.

6. The Board is authorized to establish regulatory transactions, make special and general decisions, and apply measures and sanctions regarding crypto assets providing rights specific to capital market instruments. The Board may set principles for the sale or distribution of crypto assets, whose value cannot be separated from the technology created by developing distributed ledger technology or a similar technological infrastructure, on platforms without being subject to the provisions related to capital market instruments in this Law. During the determination of the crypto assets subject to these principles, the Board may request technical reports from TÜBİTAK or other public institutions affiliated with ministries, related, or associated institutions and organizations. Approval of the technological features of a crypto asset and permission for its sale or distribution does not mean a public guarantee. The relationships between those who collect money from the public by selling or distributing these crypto assets and those who provide funds to them are subject to general provisions. During these transactions, real and legal persons signing any information documents prepared and published as determined by the Board are jointly liable for damages arising from incorrect, misleading, or incomplete information in these documents.

7. The duties and powers of institutions and organizations regarding crypto assets under other legislation are reserved.

8. This Law does not apply to crypto assets other than those of the nature specified in the sixth paragraph of this article and crypto assets traded on platforms within the principles of the second paragraph of Article 35/C.

9. The provisions of the Law No. 1567 on the Protection of the Value of Turkish Currency dated 20/2/1930 and related legislation regarding all transactions with crypto assets are reserved.

10. The Law No. 6750 on Movable Pledge in Commercial Transactions dated 20/10/2016 does not apply to pledge agreements concerning crypto assets.”

ARTICLE 4 – The following article has been added to Law No. 6362 after Article 35/A:

“Provisions Related to the Operations of Crypto Asset Service Providers and the Transfer and Custody of Crypto Assets

ARTICLE 35/C – (1) Contracts between crypto asset service providers and their customers can be made in writing or remotely using communication tools, or via methods conducted through an information or electronic communication device that allows customer identity verification as determined by the Board, whether remote or not. The procedures and principles for this will be determined by the Board. The Board may make determinations regarding the drafting, scope, modification, fees, and termination of these contracts, and the minimum requirements for their content. Any contractual terms that remove or limit the liability of crypto asset service providers towards their customers are invalid. Platforms are required to establish effective internal mechanisms to resolve customer complaints and disputes. Crypto asset service providers are obligated to verify the identities of their customers under Law No. 5549 on Prevention of Laundering Proceeds of Crime and other relevant legislation.

(2) Platforms must establish written listing procedures for determining which crypto assets will be traded or initially sold or distributed on their platforms and for terminating such trading. The Board may regulate the principles and procedures for this matter. The principles and procedures may include technical criteria regarding the technological features of crypto assets, with input from TÜBİTAK or other necessary institutions and organizations. The listing of a crypto asset by platforms does not imply government endorsement.

(3) Prices on platforms are freely formed. Except for transactions involving crypto assets that the Board considers to be widely traded on foreign markets and priced in such markets, any actions or transactions on platforms that cannot be reasonably and economically justified and that disrupt the trust, transparency, and stability of platform operations are subject to the provisions of Article 104 of this Law. Platforms must establish rules and procedures for orders and transactions to ensure that transactions are conducted reliably, transparently, effectively, stably, fairly, honestly, and competitively. They must set up the necessary surveillance systems and take all preventive measures to detect, prevent, and avoid repetitive market-disrupting actions or transactions. Platforms must identify and report such disruptive actions and transactions, and take necessary measures, including restricting, suspending, or closing accounts involved in such activities, and report their findings to the Board.

(4) Relationships between platforms and their customers and disputes arising from transactions on platforms are subject to general provisions. The granting of an operational license to platforms by the Board does not mean that the transactions are under public guarantee. Crypto assets are not subject to the investor compensation provisions regulated in Article 82 of this Law.

(5) Records of wallets and accounts used for crypto asset transfers and fund transfers by customers must be kept securely, accessibly, and traceably by crypto asset service providers. The integrity, accuracy, and confidentiality of all transaction records must be ensured. Crypto asset service providers must comply with the regulations set by the Board and the Financial Crimes Investigation Board regarding crypto asset transfer transactions. Information and data required to be included in transfer messages about the sender and receiver must be securely sent within the timelines specified in the regulations. Distributed ledger technology, independent messaging platforms, application interfaces, or other software applications and technological tools that allow messaging may be used for this purpose.

(6) It is essential for customers to hold their crypto assets in their own wallets. Custody services for crypto assets that customers prefer not to hold in their own wallets must be provided by banks authorized under the regulations of the Board and approved by the Banking Regulation and Supervision Agency, or other entities authorized by the Board to provide crypto asset custody services. Customer funds must be held in banks. The Board is authorized to set separate principles for custody based on the technological features or the nature and quantity of each crypto asset.

(7) Customer funds and crypto assets are separate from the assets of crypto asset service providers, and records must reflect this. Customer funds and crypto assets held by crypto asset service providers cannot be seized, pledged, included in the bankruptcy estate, or subjected to precautionary measures due to the debts of crypto asset service providers, even for public claims. The seventh and eighth paragraphs of Article 46 of this Law also apply to the holding of customer funds in banks by crypto asset service providers.

(8) The procedures and principles for providing investment advice and portfolio management related to crypto assets will be determined by the Board.

(9) Crypto asset service providers must adhere to the principles determined by the Board regarding their publications, announcements, advertisements, and all kinds of commercial communications.

(10) Crypto asset service providers will be given an authorization certificate indicating the activities they are permitted to perform. The appropriate opinion of the Banking Regulation and Supervision Agency is sought for banks.”

ARTICLE 5 – The following paragraphs have been added to Article 46 of Law No. 6362:

(7) The cash funds of customers held in banks must be tracked in separate accounts or sub-accounts opened for the customers of the relevant investment institution, distinct from the cash assets of the investment institution itself. The principles regarding the interest accrued on customer accounts in banks will be determined by the Board. Customer accounts cannot be used as collateral for loans, and no pledges, liens, or similar encumbrances in favor of the investment institution can be established on these accounts. The responsibility of banks under this scope is limited to the notifications made by the investment institutions. All administrative and judicial requests, such as measures, seizures, and similar demands related to the customers with balances in these accounts, must be exclusively communicated to the relevant investment institution and executed by the investment institution.

(8) The accounts opened by investment institutions in banks for customer funds must be tracked in a separate account in the bank’s accounting system. Banks are required to report to the Board regarding the accounts in which the customer funds of investment institutions are recorded, in the manner and frequency determined by the Board. This obligation can also be fulfilled through a system allocated to the Board by the Banking Regulation and Supervision Agency.”

ARTICLE 6 – The following phrase has been added to the first paragraph of Article 74 of Law No. 6362, right after the phrase “institutions operating in the capital markets deemed appropriate by the Board”: “and crowdfunding platforms and crypto asset service providers.”

ARTICLE 7 – The third paragraph of Article 99 of Law No. 6362 has been amended as follows, and the phrase in the fourth paragraph “Upon the Board’s application, the Information and Communication Technologies Authority shall block access to the relevant website” has been changed to “The Board shall decide on the removal of content and/or blocking access regarding publications made via the internet. The decision is sent to the Access Providers Association for implementation”:

“(3) When unauthorized capital market activities are determined to be conducted via the internet, the Board shall decide on the removal of content and/or blocking access regarding publications made via the internet. The decision is sent to the Access Providers Association for implementation.”

ARTICLE 8 – Following the 99th article of Law No. 6362, the following article has been added:

“Measures to be Applied in the Activities of Crypto Asset Service Providers

Article 99/A – (1) Article 96 of this Law shall apply to measures to be taken in the case of unlawful activities and transactions of crypto asset service providers; Article 99 of this Law shall apply to measures to be taken in the case of unauthorized crypto asset service provision activities; and the provisions of the first paragraph of Article 100 of this Law shall apply to announcements, advertisements, and all types of commercial communications of those engaging in unauthorized crypto asset service provision activities. The provision of a prohibited activity related to crypto assets to residents of Turkey by platforms located abroad or the provision of a prohibited activity related to crypto assets to residents of Turkey under regulations to be made by the Board shall also be deemed as unauthorized crypto asset service provision. If any of the following situations exist, the activities shall be deemed to be directed at residents of Turkey: the establishment of a workplace in Turkey or the creation of a Turkish-language website by platforms located abroad, direct and/or through residents or institutions in Turkey for promotion and marketing activities related to the offered crypto asset services. Additional criteria for determining that the activities are directed at residents of Turkey may be determined by the Board.

(2) If the Board determines that crypto asset service providers are unable to fulfill their cash payment and crypto asset delivery obligations arising from their activities or are unable to do so within a short period of time, or if their financial structures are seriously weakened independently of these obligations, or if their financial situation is weakened to the extent that they cannot meet their commitments, the Board is authorized to request the strengthening of their financial structures within a suitable period not exceeding three months or to temporarily suspend the activities of crypto asset service providers directly without giving any period; to revoke their activity licenses; to limit or revoke the signing authorities of the managers and employees whose responsibilities have been determined. The provisions of the third paragraph of Article 97 of this Law shall apply to crypto asset service providers whose activities are temporarily suspended in accordance with this paragraph.

(3) In the following cases, the Board decides to remove the content and/or block access to publications made through the internet. The decision is sent to the Access Providers Union for implementation.

a) Information is obtained that advertisements and announcements are made on the internet in violation of the principles or bans determined by the Board.

b) Information is obtained that investment advisory and/or portfolio management activities related to crypto assets are carried out on the internet in violation of the principles determined by the Board.

c) It is determined by the Board that unauthorized crypto asset service provision activities are carried out on the internet without obtaining permission.

(4) Without prejudice to the provisions of paragraph (a) of the third paragraph, if it is determined by the Board that advertisements and announcements are made through media other than the internet in violation of the principles determined by the Board, the responsible parties may be required to cease their advertisements and announcements in accordance with the relevant legislation, and illegal documents may be collected with their advertisements and announcements. These procedures shall be carried out by the competent authorities determined in the legislation concerning the establishment and operation permits of workplaces upon the notification of the chief administrative officer of the relevant local authority.”

ARTICLE 9 – Following the 99th article of Law No. 6362, the following article has been added:

“Supervision of Crypto Asset Service Providers and Applicable Sanctions

Article 99/B – (1) Articles 88, 89, and 90 of the Law shall apply regarding the supervision of the compliance of crypto asset service providers with the Law and relevant legislation. Upon the request of the Board, personnel may be assigned from ministries, related institutions, organizations, and other public institutions with the approval of these institutions and organizations to oversee, without the requirement of being a professional personnel providing technical support, the supervision activities together with the personnel of the Board authorized as determined by the first paragraph of Article 88 of the Law or conducting supervision activities in a manner allowed by their own regulations. The provisions of Articles 89, 90, 111, and 113 of this Law shall apply to those assigned in accordance with this Law.

(2) The financial audit and independent audit of information systems of crypto asset service providers shall be conducted by independent audit firms listed by the Board. Additional procedures and principles regarding the audit of information systems shall be determined by the Board in consultation with TÜBİTAK or other institutions and organizations as deemed necessary. Personnel appointed by the Board and other personnel appointed under the first paragraph of this article may accompany, as observers without compromising the principle of auditor independence, every stage of the information system audits to be conducted by authorized institutions within the framework of a program determined by the Board. Those participating in the audit in this manner shall not bear any responsibility for the audit results reached by independent audit firms and shall not use the expertise of the authorized institution for their own benefit or for the benefit of another authorized institution.

(3) Crypto asset service providers are responsible for damages arising from their unlawful activities and failure to fulfill cash payment and/or crypto asset delivery obligations. In cases where the damages cannot be compensated or it is clearly evident that they cannot be compensated from crypto asset service providers, the members of the crypto asset service providers shall be liable to the extent that the damages can be attributed to their faults and the requirements of the situation, and the provisions of Article 110/B of this Law shall apply regarding personal liability.

(4) Crypto asset service providers shall be liable for crypto asset losses arising from the operation of information systems, any type of cyber attacks, violations of information security, or any behavior of the personnel under Article 71 of the Turkish Code of Obligations No. 6098 dated 11/1/2011. In cases where the losses cannot be compensated or it is clearly evident that they cannot be compensated from crypto asset service providers, the members of the crypto asset service providers shall be liable to the extent that the losses can be attributed to their faults and the requirements of the situation, and the provisions of Article 110/B of this Law shall apply regarding personal liability. Interruptions in services resulting from incidents such as the temporary inability to transmit orders or perform transactions/transfers due to reasons not attributable to the service providers’ fault shall not be considered within the scope of this paragraph.

(5) Administrative fines shall be imposed on those who commit acts contrary to Article 35/B and 35/C of the Law or regulations to be made by the Board under Articles 103 and 105 of this Law.

(6) Articles 111, 112, 113, and 115 of this Law shall apply to crypto asset service providers. In cases where crypto assets envisaged by the principles to be determined by the Board other than crypto assets granting rights specific to capital market instruments within the scope of the sixth paragraph of Article 35/B of this Law are sold or distributed in violation of the Law and relevant regulations, measures envisaged in Articles 91 and 92 of the Law may be applied. The sanctions provided for in Article 109 of the Law shall apply in cases of such violations.

(7) Measures, seizures, and all kinds of administrative and judicial requests regarding cash and crypto assets of customers shall be carried out exclusively by crypto asset service providers. The provisions of Article 78 of Law No. 2004 regarding the inquiry of cash and crypto assets through information systems and the execution of seizure in electronic media shall apply. In accordance with the provisions of Law No. 6183 dated 21/7/1953 regarding the Collection Procedure of Public Receivables, inquiries may be made and seizures may be applied in electronic media for receivables to be pursued in accordance with the procedures established for debts through information systems, and all necessary transactions for the preservation of cash and crypto assets belonging to customers seized by judicial authorities shall be carried out by the storage service providers authorized by the Board.”

ARTICLE 10 – The title of Article 101 of Law No. 6362 has been changed to “Measures to be Applied in Investigations of Market Disruptive Actions, Insider Trading, and Market Manipulation,” and the following paragraph has been added to the first paragraph after the phrase “Board,”: “104th,”. Additionally, the following paragraph has been added to the article:

“(3) Within the scope of the examinations and inspections conducted in accordance with Articles 104, 106, and 107 of this Law, the Board may decide to remove the content and/or block access to publications made through the internet. In this case, the decision is sent to the Access Providers Union for implementation.”

ARTICLE 11 – The following sentence and paragraph have been added to the first paragraph of Article 103 of Law No. 6362, following the phrase “not less than the minimum amount stated in the first sentence of this paragraph”: “the last before the date of violation”. Additionally, the following paragraph has been added to the article:

“In accordance with the nature of the legal entity, the principles and procedures for determining gross sales revenue and pre-tax profit shall be regulated by the Board.

(9) In the calculations specified in this article and Article 104 of the Law regarding benefit calculations; commissions, taxes, credit interests, consultancy fees, and other costs deemed similar by the Board incurred in transactions and activities related to the acquisition of benefits, regardless of whether the benefit obtained is converted into cash or not, shall be taken into account. The prices to be considered in benefit calculations related to trading transactions and the principles regarding cost methods and other matters shall be determined by the Board.”

ARTICLE 12 – The following article has been added after Article 109 of Law No. 6362:

“Unauthorized Crypto Asset Service Provider Activity

Article 109/A – (1) Individuals and legal entity representatives found to be operating as crypto asset service providers without permission shall be sentenced to imprisonment for a period of three to five years and fined with a judicial fine ranging from five thousand to ten thousand days.”

ARTICLE 13 – The following article has been added after Article 110 of Law No. 6362:

“Misappropriation in Crypto Asset Service Providers

Article 110/A – (1) The chairman and members of the board of directors, as well as other members of the crypto asset service provider who misappropriate cash or cash equivalent documents or securities, other assets, or crypto assets entrusted to them or for which they are responsible for protection, custody, and surveillance, shall be sentenced to imprisonment for a period of eight to fourteen years and fined with a judicial fine ranging from five thousand to ten thousand days, and they shall be liable to compensate for the damage incurred by the crypto asset service provider.

(2) If the offense is committed with fraudulent actions aimed at preventing the misappropriation from being revealed, the perpetrator shall be sentenced to imprisonment for a period of fourteen to twenty years and fined with a judicial fine of up to twenty thousand days. However, the amount of the judicial fine shall not be less than three times the damage suffered by the crypto asset service provider and its customers.

(3) If the partners who legally or effectively held the management or control of a crypto asset service provider whose operating license has been revoked, directly or indirectly utilize, in any way whatsoever, the resources of the crypto asset service provider or its customers to endanger the secure operation of the crypto asset service provider for their own benefit or the benefit of others, thus causing damage to the crypto asset service provider or its customers, it shall be considered misappropriation. Those who commit these acts shall be sentenced to imprisonment for a period of twelve to twenty-two years and fined with a judicial fine of up to twenty thousand days; however, the amount of the judicial fine shall not be less than three times the damage suffered by the crypto asset service provider and its customers. Additionally, a decision shall be made for the joint and several liability for the payment of the incurred damage.

(4) Before the investigation begins, if the misappropriated cash or cash equivalent documents or securities, other assets, or crypto assets are returned in kind or the incurred damage is fully compensated, two-thirds of the imposed sentence shall be reduced.

(5) Before the prosecution begins, if voluntarily, the misappropriated cash or cash equivalent documents or securities, other assets, or crypto assets are returned in kind or the incurred damage is fully compensated, the imposed sentence shall be significantly reduced. If this occurs before the verdict, one-third of the imposed sentence shall be reduced.

(6) If the value of the cash or cash equivalent documents or securities or other assets or crypto assets forming the subject of the misappropriation offense is reduced by the date of the offense, the sentence to be imposed shall be reduced by up to half.

(7) In the application of this article, control refers to the control defined in Article 3 of Law No. 5411.”

ARTICLE 14 – The following article has been added after Article 110 of Law No. 6362:

“Personal Liability for Crypto Assets

Article 110/B – (1) In order to ensure that the losses incurred by customers are primarily covered from the amount determined as misappropriated, which is limited to the damage caused to customers by the management board chairman and members, other members, and natural person partners who legally or effectively held the management or control, upon the request of the Board, personal bankruptcy may be directly and personally declared by the court. If these decisions and transactions are made for the benefit of third parties, those who benefited from them shall also be subject to personal liability based on the benefits they obtained. Cash assets of those declared personally bankrupt are used directly, and non-cash assets are converted into cash to cover the losses of customers. Customer losses are prioritized for payment from the assets. If the entire customer losses cannot be covered, a distribution is made pro rata. After the full payment of customer losses, the remaining portion is returned to those declared personally bankrupt. The provisions of Law No. 2004 regarding bankruptcy shall apply to those for whom bankruptcy is requested under this article.”

ARTICLE 15 – The following article has been added after Article 115 of Law No. 6362:

“Special Investigation Procedure for Misappropriation Offenses Related to Crypto Assets

Article 115/A – (1) Investigations and prosecutions for the offense specified in the third paragraph of Article 110/A of this Law shall be initiated by the Public Prosecutors ex officio upon written notification from the Board or in cases where delay is deemed inconvenient, and the Board shall be informed accordingly. Upon application for the initiation of public prosecution, along with the acceptance of the indictment, a copy shall be served to the Board, and the Board shall also become an intervening party.

(2) If, as a result of investigations initiated pursuant to the first paragraph of this article, a decision of non-prosecution is reached, this decision shall be served to the Board and the concerned parties according to their relevance. The Board and the concerned parties have the right to appeal against these decisions in accordance with the Criminal Procedure Code numbered 5271. In cases where public prosecution is initiated, a copy of the indictment shall be served to the Board.

(3) Cases related to misappropriation offenses defined in this Law shall be heard in the (1) High Criminal Courts numbered according to the name of the province where the offense was committed. In places deemed necessary, upon the proposal of the Ministry of Justice, other High Criminal Courts in those places may also be designated by the Board of Judges and Prosecutors to handle such crimes.

(4) The provisions of Article 166 of Law No. 5411 shall apply to investigations and prosecutions of offenses falling within the scope of the third paragraph of Article 110/A of this Law.

(5) Persons convicted of offenses listed in Article 110/A of this Law shall not be eligible for conditional release until they have paid their debts and compensations to the Treasury or until these debts and compensations are collected from their assets.

(6) With regard to offenses covered by Article 110/A of this Law, the provisions regarding seizure in Article 128 and the appointment of a trustee for company management in Article 133 of Law No. 5271 may be applied.”

ARTICLE 16 – Following the fourth paragraph of Article 130 of Law No. 6362, the following paragraph has been added, and the other paragraphs have been adjusted accordingly:

“(5) Each year, one percent of the total revenues of platforms, excluding interest income from the previous year, shall be paid to the Board, and one percent shall be allocated to the TÜBİTAK budget by the end of May of the relevant year and recorded as revenue. Other principles regarding accrual and payments made pursuant to this paragraph shall be determined by the Board.”

ARTICLE 17- The following temporary article has been added to Law No. 6362:

“Transitional provisions regarding crypto asset service providers“

TEMPORARY ARTICLE 11 –

(1) Entities engaged in crypto asset service provision activities at the date this Law enters into force must, within one month from the effective date, submit necessary applications to the Board by providing the documents specified by the Board, to obtain an operating permit by fulfilling the conditions envisaged in the secondary regulations to be issued in accordance with Articles 35/B and 35/C of the Law, or declare that they will liquidate within three months without causing harm to customer rights and interests and refrain from accepting new customers during the liquidation process. Those intending to commence activities after the enactment of the Law shall declare that they will submit necessary applications to the Board before commencing activities, to obtain an operating permit by fulfilling the conditions envisaged in the secondary regulations. Applications submitted to the Board under this paragraph shall be announced on the Board’s website. Organizations subject to liquidation shall announce this on their websites and also inform their customers via electronic mail, text message, phone, and similar communication means.

(2) Those who fail to fulfill the obligations specified in the first paragraph may be subject to the provisions of Articles 99/A and 109/A of the Law. Failure to meet transfer requests of customers with accounts in organizations opting for liquidation or failing to apply for registration with the Board within the specified period constitutes the offense of unauthorized service provision under Article 109/A. General provisions apply in case of disputes arising from these transfer requests.

(3) After the secondary regulations to be issued by the Board in accordance with this Law come into force, entities other than those specified in the first paragraph may not commence operations without obtaining an operating permit, and organizations operating under the first paragraph shall apply to the Board for an operating permit within the specified period in the secondary regulation. Upon the publication of the secondary regulations, the Board may set a period for the completion of authorization procedures for organizations operating under the first paragraph, and may request organizations failing to obtain an authorization certificate within this period to terminate their activities. The Board may extend the specified periods. Those acting contrary to the provisions of this paragraph shall be subject to the provisions of Articles 99/A and 109/A of the Law.

(4) Crypto asset service providers located abroad shall terminate their activities targeting individuals domiciled in Turkey in the manner specified in the first paragraph of Article 99/A of the Law within three months following the date the Law enters into force.

(5) Activities of ATMs and similar electronic transaction devices located in Turkey that allow customers to convert their crypto assets into cash or cash-equivalent crypto assets and to carry out transfers of crypto assets shall be terminated within three months following the date the Law enters into force. ATMs that fail to terminate their activities shall be closed by the competent authorities determined in the legislation on business opening and operating permits upon the notification of the local chief administrative officer. The provisions of Articles 99/A and 109/A of the Law shall apply to those who continue their activities or enable such activities.

(6) The practice of recording revenue to the budgets of the Board and TÜBİTAK based on the revenues of platforms in accordance with Article 130 of this Law shall begin in 2025 based on the 2024 revenues.

(7) Secondary regulations to be issued in accordance with Articles 35/B and 35/C of the Law shall enter into force within six months from the date this article comes into effect.”