All You Need to Know About Türkiye CMB’s (SPK) New Pre-Application Process for Crypto Asset Service Providers
The Capital Markets Board (CMB) announced today (July 2, 2024) the start of the pre-application process. This date marks the beginning of the one-month pre-application period specified in the law. For those who wish to continue as Crypto Asset Service Providers in Turkiye and provide Crypto Asset services with permission from the CMB while awaiting secondary regulations, the pre-application process has begun today.
Step 1: Decision of the Authorized Body
Your first step is to secure a decision from your company’s authorized body. This decision should clearly state that your crypto asset service provider will continue to operate in accordance with Provisional Article 11 of the relevant Law. This declaration is a foundational requirement for your application.
Step 2: Information on Shareholders and Key Executives
The CMB requires detailed information about your shareholders, board members, general manager, and assistant general managers. For each individual, you must provide:
• A criminal record certificate obtained within the last six months.
• A copy of their identity card (for Turkish citizens) or passport (for foreigners).
• Copies of their diploma and a comprehensive curriculum vitae.
Step 3: Comprehensive Company Information
You need to submit extensive details about your company’s operational and technological infrastructure. This includes:
• The information systems infrastructure used by your company.
• Processes and tools in place for the protection of customer assets.
• Procedures related to processing transactions into the blockchain system.
• Integrations with other internal and external systems, such as AML/CFT systems and reporting mechanisms to public authorities.
• Detailed descriptions of your operation and reporting processes.
• Explanations on the functioning of your risk management processes, along with supporting documents.
Step 4: Custody Infrastructure Details
The CMB requires a thorough overview of your company’s custody infrastructure. This includes:
• The functioning of your custody system for both crypto assets and clients’ cash assets.
• Information on whether your company outsources any custody services.
• Documents explaining the wallet technologies used to store crypto assets.
Step 5: Organization Chart
A detailed organization chart of your company must be included in your application. This chart should clearly outline the structure and hierarchy within your company.
Step 6: Completing the Crypto Asset Service Provider Information Form
The CMB has provided a specific form to gather essential information about your company. Key sections of this form include:
Company Information
• Trade title and business/brand name (if applicable).
• Center address and any branch addresses.
• Date of establishment, MERSIS number, trade register number, tax office and number.
• Contact details, including telephone number, internet address, and registered electronic mail address.
• Information on paid-in capital.Financial Figures
• Net profit (loss), income (excluding interest income), equity, and active total for the previous periods (from 2024/6 to 2019).
Subsidiaries
• Details about each subsidiary, including title, type of activity, capital, and share amount.Banking Information
• Names of banks your company has worked with, including details about deposits and credits, such as term, amount, collateral, type, and maturity.Payables
• Information on payables to other real and legal persons other than banks, including name of creditor, type, amount, and maturity.Legal Proceedings
• Disclosure of any legal proceedings involving the company or significant shareholders (holding more than 10% of the company’s capital) related to loans from domestic or foreign banks in the last five years.
• Detailed disclosure of any material legal disputes involving the company and/or its shareholders.
Shareholding and Partnership Structures
• Detailed information on the shareholding structure, including names, share amounts, and percentages.
• For legal entity partners, details on the partnership structure, including trade names, share amounts, and percentages.
Management Information
• Names and roles of the company’s board of directors, general manager, and assistant general managers.
Customer and Personnel Information
• Number of customers and balance information.
• Detailed information on personnel, categorized by type (director, administrative staff, IT personnel, etc.).External Service Procurement
• Information on external services procured, including the subject of service and any partnerships or relationships with the service provider organization.
Storage Information
• Details on the types and number of crypto assets stored, current values, and distribution between customer assets and platform-owned assets.
• Current value of crypto assets in hot and cold wallets as of the application date.
• Current value of cash assets held on behalf of customers.Step 7: Submitting Supporting Documents
Ensure you include the following supporting documents with your application:
• Articles of association and annual report for the last accounting period.
• Announcements regarding the company in the trade registry records and trade
registry newspapers.
• Latest financial statements certified by a certified public accountant or
independent accountant, showing the current financial status of the company.
Annex — 1 CMB Documents List
Annex — 2 CMB Application Form
https://spk.gov.tr/duyurular/basin-duyurulari/2024/kripto-varlik-hizmet- saglayicilara-iliskin-duyuru
Best Regards
Sima Baktas, Esq
sima@globalblaw.com
