Developments on Crypto Assets in aspect of MASAK
New developments in Crypto Asset regulations occur every day. Following the publication of our article on 23 December 2024, MASAK also shared legislations by the following three regulations and gave the sector a 1-month compliance period.
Amendments to the Regulation on Measures to Prevent Laundering Proceeds of Crime and Financing of Terrorism
With the Regulation Amending the Regulation on Measures for Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Measures Amendment Regulation”) published in the Official Gazette dated 25 December 2024 and numbered 32763, certain amendments were made to the Regulation on Measures for Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Measures Regulation”).
Pursuant to Article 5 of the Regulation on Measures to Prevent Laundering Proceeds of Crime and Financing of Terrorism, crypto asset service providers, which are deemed obliged pursuant to the Measures Regulation, are obliged to determine the identity of their customers and those acting on behalf of or on account of their customers, by obtaining information regarding identity in certain cases listed in the article, confirm the accuracy of this information, and take the necessary measures to reveal the real beneficiary of the transaction. For other obliged parties, this obligation is foreseen when the transaction amount or the total amount of more than one interconnected transaction is TRY 185,000 or more, while for crypto asset service providers, this limit is set at TRY 15,000.
Article 24/A on crypto asset transfers has been added to the Regulation. This article regulates the mandatory information to be included in the messages regarding the crypto asset transfer transaction intermediated by crypto asset service providers and the obligation to confirm the information, and that in transfers to unregistered wallet addresses, the service provider will receive a statement from the customer, who is the party to the transfer, to verify the identity of the wallet owner.
Amendments to the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board
With the Regulation Amending the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board Presidency (“E-Notification Amendment Regulation”) published in the Official Gazette dated 25 December 2024 and numbered 32763, some amendments were made to the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board Presidency (“E-Notification Regulation”).
Article 7 of the E-Notification Regulation lists the organizations to which the Financial Crimes Investigation Board will send electronic notifications. Crypto asset service providers have been added into the list of such organizations.
The newly added Provisional Article 3 stipulates an application period for crypto asset service providers. Accordingly, those who are carrying out crypto asset service provider activities on the date of entry into force of the provisional article 11 of the Capital Markets Law dated 6 December 2012 and numbered 6362, and who are declared to be in operation by the Capital Markets Board (“CMB”), and, must apply to the Presidency for the opening of an account within one month from the date of publication of this article.
Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism
With the Regulation Amending the Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Compliance Amendment Regulation”) published in the Official Gazette dated 25 December 2024 and numbered 32763, some amendments were made to the Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Compliance Regulation”).
According to the Compliance Regulation, crypto asset service providers have been added into the list of obligors that are required to establish a compliance program. Pursuant to Article 5, the compliance program includes establishing corporate policies and procedures, conducting risk management activities, conducting monitoring and control activities, appointing a compliance officer and establishing a compliance unit, conducting training activities and conducting internal audit activities. In addition, pursuant to Article 7, obligors should establish a corporate policy within the scope of the compliance program, taking into account their business size, business volume and the nature of their transactions.
With the section added to Article 7(1) by the Compliance Amendment Regulation, the scope of the corporate policy is explained. Accordingly, in the monitoring and control activities within the scope of the corporate policy, measures will be taken to continuously monitor customers and transactions, and in this context, the sender and recipient information in electronic transfer and crypto asset transfer messages will also be taken into consideration.
Pursuant to Article 13, obligors shall apply one or more of the measures specified in the Article for the groups that they determine as high-risk following the result of the risk rating. The Amendment introduces a special regulation on the
measures to be taken by crypto asset service providers. Accordingly, for financial institutions to establish business relationships with crypto asset service providers and for crypto asset service providers to establish business relationships with their customers, measures to keep the business relationship under strict surveillance will be applied by at least (i) obtaining information, to the extent possible, about the source of the assets subject to the transaction and the funds belonging to the customer, (ii) obtaining information about the purpose of the transaction, and (iii) increasing the number and frequency of the controls applied and identifying the types of transactions that require additional controls, and appropriate measures will be taken to set limits on the amount and number of transactions. The establishment of business relationships with crypto asset service providers by financial institutions will be subject to the approval of the senior officer.
Finally, a deadline for the appointment of a compliance officer is stipulated. As of the effective date of the provisional Article 11 of the Law No. 6362, it is regulated that those who are engaged in crypto asset service provider activities on the effective date of the provisional Article 11 of the Law No. 6362 and who are declared to be in operation by the CMB, shall appoint a compliance officer and deputy compliance officer within one month as of the publication date of this paragraph. In addition, these obligors will establish their compliance programs within one month at the latest following the appointment of the compliance officer.
