Turkey -- Custody Regulations Regulatory Overview

Turkey regulates cryptocurrency/digital asset custody primarily through Law No. 7518 on the Regulation of Crypto Assets (published in Official Gazette No. 32590 on July 2, 2024) and oversight by the Capital Markets Board (CMB, or SPK), with Crypto Asset Service Providers (CASPs) including custodians requiring CMB authorization. Custody services are restricted to licensed joint-stock companies (and certain banks), emphasizing investor protection via segregation, capital rules, and secure storage.[1][2][3][6]

Custodial License Requirements

CASPs offering custody must obtain a CMB license, forming as joint-stock companies meeting governance, IT security, and organizational criteria. Foreign CASPs face restrictions under the reverse solicitation principle, prohibiting active marketing to Turkish users without authorization.[1][2][5]

Segregation of Client Assets Rules

CASPs must store client crypto assets separately from their own, ensuring they cannot be seized by the provider's creditors, pledged, or included in bankruptcy proceedings. At least 95% of client assets must be held in licensed custody institutions.[3][6]

Insurance/Bonding Requirements

No explicit mandates for insurance or bonding appear in current regulations; protections rely on segregation, capital requirements, and IT security rather than specified insurance.[1][2][3]

Cold Storage Mandates

Regulations require robust information systems and cold wallets for custody providers, though exact percentages (e.g., minimum cold storage thresholds) are not detailed in available sources. Platforms must structure cold wallets per CMB IT criteria.[2]

Qualified Custodian Definitions

Qualified custodians are CMB-licensed CASPs (joint-stock companies or authorized banks) providing custody services, integrated potentially with entities like the Turkish Central Securities Depository (Takasbank). They must adhere to capital, segregation, and security rules.[1][2][3]

Pending Custody Legislation

No specific pending legislation on custody is identified post-Law No. 7518; CMB continues issuing resolutions (e.g., September 19, 2024, on prohibitions like lending) and communiqués for implementation. Integration with Takasbank for custody is suggested but not finalized.[3][5]

Specific Regulatory References

• Law No. 7518: Official Gazette No. 32590, July 2, 2024 (establishes CASP status, CMB licensing, segregation).[3]
• CMB Resolutions/Communiqués: Govern licensing, capital (TRY 500M/~$13.7M for custodians), prohibitions (e.g., Sept 19, 2024).[1][2][5][6]
• Central Bank Regulation: Official Gazette No. 31456, April 16, 2021 (prohibits crypto as payment, no direct custody impact).[4]
• MASAK enforces AML for CASPs, including custody.[1][6]

Capital requirements: TRY 500 million ($13.7M) for custodians; TRY 150 million ($4.1M) for exchanges.[1][6] Platforms must disclose risks and comply with AML/remote ID standards.[2] Regulations aim to prevent incidents like Thodex/FTX via strict oversight.[3]