New rules by the Capital Markets Board include a high capital requirement, governance criteria, and compliance deadline to enhance market security and trust.
The Capital Markets Board (SPK) in Turkey has introduced new regulations for the establishment and operation of cryptocurrency exchanges. These regulations are designed to enhance market security and foster trust within the sector.
One of the key aspects of the new regulations is the requirement for a minimum capital of 50,000,000 TL, which must be paid in cash. This high capital requirement aims to ensure that only serious and financially stable entrepreneurs can enter the market. By setting this threshold, the SPK hopes to reduce the risk of fraudulent activities and enhance the overall stability of the cryptocurrency market in Turkey.
The new rules also impose strict criteria on the governance and management structures of cryptocurrency exchanges. Platforms must be established as joint-stock companies, and their boards must have at least three members who hold a four-year university degree. Additionally, all founders and key managers are required to have clean criminal records. These measures are intended to ensure competent and trustworthy leadership within the sector.
Under the new regulations, the activities of cryptocurrency platforms are limited to trading, exchange, and transfer of cryptocurrencies. This restriction is aimed at preventing platforms from engaging in unauthorized or risky activities that could jeopardize market security. By focusing solely on these core activities, the SPK aims to create a more transparent and secure environment for cryptocurrency transactions.
Cryptocurrency exchanges operating in Turkey must comply with the new regulations by November 8, 2024. Failure to meet this deadline will result in criminal action. This compliance deadline gives existing platforms ample time to adjust their operations and meet the new requirements, ensuring a smooth transition to the new regulatory framework.
