With the Law No. 7518 (02.07.2024), comprehensive regulations regarding crypto assets and crypto asset service providers (KVHS) have been added to the Capital Markets Law No. 6362.
Crypto Asset Definition (CMB art.3/1-w)
"Intangible assets that are created and stored electronically using distributed ledger technology or similar technology, distributed over digital networks, and that can express value or rights.
KVHS Definition and Types
- Platforms: Crypto asset trading platforms (Binance TR, BTCTurk etc.)
- Wallet service providers: Organizations that provide custody services
- Other service providers:Transfer, clearing, account management
CMB Permit Obligation
To operate as KVHS, it is mandatory to obtain permission from CMB. Unauthorized activity:
- CMB Article 99/A: Imprisonment from 3 to 5 years and judicial fine from 5,000 days to 10,000 days
- Administrative fines
- Activity ban
Separation of Customer Assets
KVHS is obliged to keep customers' crypto assets separate from their own assets. Use contrary to the contract constitutes the crime of cryptocurrency embezzlement (a new type of crime introduced by the CMB).
Cryptocurrency Embezzlement Crime
For more detailed information: Cryptocurrency Embezzlement Crime article.
- Punishment: 8-14 years of imprisonment and a judicial fine of 5,000 to 10,000 days
- In case of active regret, discount provisions apply
Foreign Platforms Serving Turkish Customers
Unlicensed foreign platforms are prohibited from serving customers in Türkiye by Law No. 7518. Access blocking is implemented through BTK.
MASAK Obligations
KVHSs are considered "obliged" within the scope of Law No. 5549:
- Know your customer (KYC) obligation
- Suspicious transaction reporting
- Recording and reporting
- Risk assessment
Tax Size
Profits from crypto transactions are currently not specifically taxed; However, income obtained within the scope of commercial activities is subject to income tax as commercial income. Legal regulations must be kept up to date.
Supreme Court Approach
The Supreme Court has not yet established sufficient jurisprudence during the period of Law No. 7518. However, during the predecessor legislation period, crypto assets were described as "intangible assets" rather than "money"; It has been adopted that fraud, theft and embezzlement crimes can also be applied in terms of crypto assets.
KVHS regulation is new and there are uncertainties in implementation; It is recommended that you plan your compliance/risk process with cryptocurrency and capital markets expert lawyer.