Cryptocurrency Exchange License Support Services in Turkey

Turkey, a leading nation in global cryptocurrency adoption, has taken significant steps to regulate its crypto asset ecosystem with the introduction of the Crypto Law (Law No. 7518) on July 2, 2024. The law establishes a clear regulatory framework, particularly for Crypto Asset Service Providers (CASPs), including cryptocurrency exchanges. Under this law, all CASPs operating in Turkey must obtain a license from the Capital Markets Board (CMB) to ensure transparency, compliance, and user protection.

Why Licensing is Mandatory for Cryptocurrency Exchanges in Turkey

1. Regulatory Compliance
   The Crypto Law defines CASPs broadly, encompassing cryptocurrency exchanges that facilitate the buying, selling, custody, and transfer of crypto assets. Obtaining a license is mandatory to legally operate in Turkey.

2. Market Integrity
   Licensing ensures that cryptocurrency exchanges adhere to strict standards, reducing the risk of fraud and financial mismanagement.

3. Consumer Protection
   The law mandates robust measures to safeguard users’ crypto assets, enhancing trust and security in the Turkish crypto ecosystem.

4. Global Standards Alignment
   Licensed exchanges are expected to comply with international best practices, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, making Turkey an attractive market for global investors.

Licensing Process for Cryptocurrency Exchanges

To operate as a licensed cryptocurrency exchange in Turkey, businesses must follow a detailed process outlined by the CMB. Key steps include:

1. Application Submission
   Exchanges must submit a comprehensive application to the CMB, including detailed documentation about the company, board members, and operational structure.

2. Technical Requirements
   The Scientific and Technological Research Council of Turkey (TÜBİTAK) plays a critical role in evaluating technical aspects such as the exchange’s custody infrastructure, security measures, and IT systems.

3. Compliance Policies
   Exchanges must demonstrate adherence to AML/CFT, KYC, data protection, and risk management policies.

4. Ongoing Monitoring
   Licensed exchanges are subject to regular audits and must maintain compliance with evolving regulations.

Challenges and Opportunities

While the licensing process is comprehensive, it also presents challenges, such as navigating the regulatory landscape, ensuring compliance, and meeting technical criteria. However, these challenges are outweighed by the opportunities, including enhanced credibility, consumer trust, and the ability to legally market services to Turkish users.

How KEYBIZ CPAs & Advisors Can Help

At KEYBIZ CPAs & Advisors, we offer tailored support for cryptocurrency exchanges seeking licensing in Turkey. Our services include:

• Regulatory Guidance: Navigating the complexities of the Crypto Law and ensuring a smooth application process.
• Technical Advisory: Assisting with the preparation of technical infrastructure documentation required by TÜBİTAK.
• Compliance Setup: Developing and implementing robust AML, KYC, and data protection policies.
• Ongoing Support: Providing continuous advisory services to ensure compliance with CMB regulations.

Conclusion

The introduction of the Crypto Law has ushered in a new era of accountability and professionalism for cryptocurrency exchanges in Turkey. By obtaining a license, exchanges can operate legally, build trust, and access a growing market of crypto users.

For expert assistance with the Cryptocurrency Exchange License Support Services in Turkey, contact KEYBIZ CPAs & Advisors today. Let us guide you through the licensing process and help you achieve compliance with confidence!