The Capital Markets Board (CMB) has recently introduced a comprehensive set of regulations in the cryptocurrency space. These regulations, which came into effect through amendments to the Capital Markets Law No. 7518, aim to streamline the operations of crypto asset platforms and safeguard the rights of investors. The framework for these regulations was established under Temporary Article 11 added to the Capital Markets Law No. 6362.
Basic Regulations and Principles
The CMB outlined several key principles to standardize the operations of crypto asset platforms and protect investors. Some of the main regulations include:
1. Obligation to Keep Customer Cash in Banks: Platform customers’ funds must be held in banks, separate from the platform’s own assets. Platforms are required to establish accounts in the customers’ names and manage these accounts exclusively for the customers. Transactions involving customer funds must be conducted through authorized institutions only.
2. Receiving Customer Orders: Crypto asset platforms can only accept customer orders through their official websites, mobile applications, or registered phone lines operated by authorized personnel. Receiving orders via social media platforms like Whatsapp or Telegram is prohibited. Platforms must maintain secure records of all customer orders received, whether electronically or via phone.
3. Restrictions on Crypto-Asset Trading: Platforms engaging in the trading, initial sale, exchange, and custody of crypto assets in a manner similar to exchange offices may be considered unauthorized service providers. Such platforms must cease their activities by November 08, 2024.
4. NFT and Gaming Assets Exception: Non-fungible and gaming-specific crypto assets are exempt from certain listing regulations. Platforms dealing with these assets must notify the CMB of their activities.
5. Transparency and Investor Information Obligations: Platforms must operate transparently and inform customers about the regulatory status of traded assets. Platforms dealing with assets outside the Law’s scope must clearly disclose this information to customers before accepting orders.
6. Liquidity Providers and P2P Marketplaces: Entities providing liquidity for crypto asset transactions without offering investor services are not considered platforms. Peer-to-peer digital marketplaces engaging in unauthorized services must cease operations by November 08, 2024.
7. Jurisdiction and Responsibilities of Other Institutions: Crypto assets linked to other asset classes like commodities or real estate fall under the jurisdiction of relevant regulatory bodies. Platforms must comply with regulations set by these institutions for listing such assets.
8. Prohibition on Misleading Advertisements: Platforms must refrain from publishing misleading information or making false promises to investors. Misleading campaigns must be terminated within 15 days.
9. MKK Integration: Platforms must share data with the Central Registry Agency (MKK) and integrate with the agency’s technical infrastructure.
10. Crypto-Asset Custody: Platforms must handle customers’ crypto asset transactions by selling assets stored in platform wallets. Customer assets cannot be used for third-party transactions, loans, or leveraged deals. Platforms must have control over customer assets not stored in personal wallets by November 08, 2024.
These regulations are expected to impact the referral campaigns of cryptocurrency exchanges. It is crucial for platforms to adhere to these guidelines to ensure a fair and secure trading environment for investors.
Please note that this article is for informational purposes only and should not be considered as investment advice.