The relationship between real-world assets and crypto assets is a hot topic that will be decisive in determining the role of crypto assets in our lives. That is why the combination of crypto assets with real-world assets should be discussed alongside the integration of blockchain technology with real-world assets. This article explores whether crypto assets linked to real-world assets fall under Capital Market Legislation in Turkish law.
Crypto assets have gained significant attention in the financial world in recent years, interacting with various forms on a daily basis. This interaction arises from the fact that crypto assets have unlocked new opportunities in the capital markets, which had previously been stagnating in terms of new derivative products, and they have the potential to unlock even more.
Turkish law does not have specific regulations for crypto assets, which is why we must rely on general laws and regulations. As public authorities worldwide seek to compare crypto assets to traditional financial instruments, the first point of reference is often capital market instruments, as they are the closest in nature.
According to the Capital Market Law (CML), capital market instruments refer to securities and derivative instruments, as well as other capital market instruments determined by the Capital Markets Board of Türkiye (CMB), including investment contracts. Consequently, the Law grants the CMB the authority to determine capital market instruments. That said, the CMB has yet to make a decision on crypto assets. To clarify, here are a few examples of the aforementioned instruments:
Securities: Shares, bonds, bills, asset-backed securities, derivative instruments, etc.
Derivative instruments: Futures contracts, option contracts, swap contracts, etc.
Investment contracts: Investment funds, private pension plans, etc.
Classifying a product as a capital market instrument requires it to meet specific criteria. Accordingly, the three most important criteria include:
- Basis of Value:
A capital market instrument must derive its value from the financial position or activities of the issuer, or a specific asset. This asset can be either tangible (e.g., real estate, gold) or intangible (e.g., patent, copyright).
- Return Potential:
A capital market instrument must generate dividends, profits, or interest. This return can be either fixed or variable.
- Transferability:
A capital market instrument must be transferable, meaning investors should be able to trade it.
A product that meets these criteria may be considered a capital market instrument under the legislation, in which case it will fall under the supervision of the CMB and the CML. Therefore, there is no need for a separate draft bill to determine the legal status of a crypto asset interacting with real-world assets. An assessment by the CMB should be sufficient.
That being said, grouping all crypto assets under a single category may lead to an inaccurate assessment of the issue. Determining whether a crypto asset qualifies as a capital market instrument legally requires a comprehensive analysis of its various aspects, from smart contract design to its intended use cases. That is why each crypto asset should be assessed on its own merits and not be subject to general categorization.
Accepting crypto assets as capital market instruments will have significant implications. When a crypto asset is classified as a capital market instrument:
- It will be subject to the supervision of the CMB.
- Approval of the CMB will be required for the issuance of crypto assets. Anything to the contrary would lead to unauthorized issuance, which could result in legal and criminal sanctions.
- Crypto asset investors would be able to benefit from the investor protection regulations enforced by the CMB.
- Crypto assets would be traded through institutions licensed by the CMB.
Ultimately, the interaction between crypto assets and real-world assets will play a key role in their assessment as capital market instruments. If crypto assets grant their owners and/or investors rights associated with capital market instruments, these assets will gain broader acceptance among investors, thereby contributing to the development of capital markets. However, it is essential that the authorities also support these developments.
Bu içerik en son 12 May 2025 tarihinde güncellenmiştir.
