21 Sep
21Sep

In a significant move to enhance consumer protection and regulate the cryptocurrency market, the recent regulations align with Temporary Article 11 of Capital Markets Law No. 6362. These rules introduce a comprehensive framework aimed at ensuring the integrity of platform operations and safeguarding customer rights.

Key Provisions of the Regulations

1. Segregation of Customer Funds

One of the cornerstone provisions mandates that cryptocurrency platforms maintain customer funds in separate bank accounts. This ensures that customer assets are distinctly protected from the platform’s own financial resources, reducing the risk of misappropriation and enhancing overall financial security.

2. Authorized Transactions Only

The regulations specify that customer transactions must occur exclusively through authorized institutions. This measure aims to prevent unauthorized or fraudulent activities, ensuring that users engage only with legitimate entities.

3. Order Processing Protocols

Platforms are required to accept orders solely through their official websites, mobile applications, or registered phone lines. Furthermore, all order data must be securely stored in an immutable format, promoting transparency and accountability.

4. Restrictions on Exchange-like Activities

Activities that resemble those of traditional exchange offices will be deemed unauthorized and must cease by November 8, 2024. This provision aims to eliminate confusion and ensure that all operations are compliant with the established regulatory framework.

5. NFTs and Virtual Assets Exemption

Non-fungible tokens (NFTs) and virtual game assets are exempt from standard listing rules. However, platforms handling these assets are required to notify the Capital Markets Board (CMB) about any transactions involving them. This ensures that there’s oversight without stifling innovation in these burgeoning markets.

Transparency and Customer Communication

Platforms are obligated to clearly inform customers whether the traded assets fall under CMB supervision. Accurate communication is crucial; misleading claims will not be tolerated, fostering a more trustworthy environment for investors.

Peer-to-Peer Marketplace Regulations

Entities providing liquidity without direct investor services are not classified as platforms, but unauthorized activities within peer-to-peer marketplaces must also cease by November 8, 2024. This ensures that all trading practices meet regulatory standards.

Integration with Central Registry Agency

Platforms must integrate with the Central Registry Agency (MKK) and share pertinent data, promoting cooperation between various regulatory bodies. This integration enhances oversight and accountability within the cryptocurrency sector.

Responsible Management of Customer Transactions

Finally, the regulations stress the importance of responsible management of customer crypto transactions. Platforms are prohibited from engaging in third-party disposals or lending practices involving customer assets, protecting users from potential losses and unethical practices.

Conclusion

The introduction of these regulations represents a significant step towards creating a safer and more transparent cryptocurrency market. By ensuring the segregation of customer funds, restricting unauthorized activities, and enhancing communication, the regulatory framework aims to foster a trustworthy environment for all participants. As the deadline of November 8, 2024, approaches, platforms must adapt to these requirements, reshaping their operations to comply with the new landscape of cryptocurrency regulation.

September 2024, Cryptoniteuae

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