The developments in the field of crypto assets in the last week are as follows;

1.  Financialization of Crypto Assets

With the decision of the Public Oversight, Accounting and Auditing Standards Board dated 16.12.2024 and numbered 75935942-050.01.04-[01/28123] published in the Official Gazette dated 19.12.2024 and numbered 32757, the amendments (“Amendment”) on the Financial Reporting Standard for Large and Medium-Sized Enterprises (“Financial Reporting Standard“) regarding crypto assets (“Amendment“) have been published.

With the addition to Additional Article 9, the concept of crypto asset has been defined. According to the added definition, crypto assets refer to intangible assets that are created virtually using distributed ledger technology or a similar technology and distributed over digital networks, but are not qualified as dematerialized money, fiat money, electronic money, payment instruments, securities or other capital market instruments.

It has been determined to which crypto assets the principles under the heading of Accounting for Crypto Assets will be applied. New provisions have also been added regarding the subsequent measurement and presentation of crypto assets. Accordingly, the crypto assets held will be measured at fair value. Fair value refers to the amount that may arise in the event of an asset changing hands or fulfilling an obligation between knowledgeable and willing parties in a mutual bargaining environment. The next measurement of crypto assets, whose fair value cannot be reliably measured, is carried out over the cost price. In addition, crypto assets are not subject to redemption.

Crypto assets measured at fair value are also included in the application area of the provisions on impairment in assets.

The Financial Reporting Standard regulates a number of disclosures that must be made by all businesses. Regarding crypto assets, the issues that need to be explained, such as the name of the crypto asset, the cost price and how this cost is determined, its fair value, the number of crypto assets held, have been added to Section 26 titled Footnotes.

Items named “Digital Assets” have been added to the consolidated and individual statements of financial position to be included in current and non-current assets.

The amendments entered into force to be implemented in reporting periods starting on or after 01.01.2024.

2. Crypto Assets can be subject to trademark registration applications

With the Communiqué on the Classification of Goods and Services for Trademark Registration Applications (Türkpatent 2024/2) published in the Official Gazette dated December 20, 2024, cryptocurrencies and non-fungible tokens (NFT – Qualified Intellectual Property) were added to the list of goods and services of the Turkish Patent and Trademark Office.

This amendment has entered into force as of the date of publication.