Cryptocurrency Law

In addition, the necessary legal support and infrastructure is provided by Usul Hukuk to its clients who want to operate a Cryptocurrency Exchange. Due to the fact that Cryptocurrencies are connected to a decentralized system, it is necessary to take measures at international standards in exchanges in order to prevent international terrorism financing and money laundering and to take necessary measures in the stock market operation. Within the scope of the relevant measures, identity verifications and risk assessments, as well as user agreements and privacy policies in European Union Standards are prepared by the Procedural Law and made available to its clients.

Blockchain technology, which is a technology that everyone has just started to get to know, but which is not really new, can be compared to a registry whose origins go back many years. In this technology, each ring of the chain appears as a data block and the transactions are written into these rings. Once data is written to these rings, it cannot be changed or deleted again. This chain is continued with the new ring created next to the ring filled with data, and the two rings are connected to each other with different encryption algorithms. Each new block contains data from the previous block, and if a change, or cheating, is made in the block, the main blockchain instantly detects this change and fixes the broken link with chain verification methods. What is required to re-enter the system is to remove the cheat and correct the situation.

The most important feature of blockchain technology, which is used in many different industries today, is that it has a decentralized and distributed system. In central systems, the system can be easily manipulated and data can be manipulated by taking over the center. In addition, the whole system may be damaged as a result of various malfunctions. Blockchain technology, on the other hand, is not affected by such negative situations as it is not connected to a single center. Blockchain technology is often associated with cryptocurrencies, but it actually has a very wide field of study. Different transactions such as different transactions made by banks, smart contracts, notary transactions can be counted as a few of the usage areas of blockchain technology today. With the introduction of technology into daily life, the use of blockchain technology will become widespread in many areas.

Cryptocurrencies, which are designed using cryptographic protocols and made encrypted by means of complex code systems, have emerged as new digital currencies. Bitcoin, which was created by a person or people whose identity is still a mystery, based on freedom and not being tied to any central authority, is an electronic money that works without any intermediary between people. Bitcoin has also gained its existence depending on the blockchain technology. The Genesis block, known as the first block of the blockchain, was created and this electronic money was made available to everyone. Bitcoin is the most well-known crypto currency in the world, as well as hundreds more are used in circulation.

There are many features that distinguish cryptocurrencies from the traditional money system. These electronic systems, which cannot be controlled by any person, institution or organization, cannot be controlled by any state authority. No institution was made an intermediary during the transfer of these funds. The transfer of cryptocurrencies takes place directly between digital wallets and there is no outside interference. For this reason, for several years now it has become the main vehicle for the circulation of unregistered money around the world. For example, the Financial Crimes Investigation Board of the Ministry of Treasury and Finance, which is known as MASAK in our country, whose main duties are to prevent money laundering, can take measures to prevent the money from falling into the account by opening an investigation in any unusual activity. As in our country, every state has institutions that serve this purpose. However, since the mobility of these institutions is on the movements of the registered money, it is not possible to control and control the crypto money transfer transactions between digital wallets, regardless of their size. For this reason, the KYC (Know Your Costumer) procedure should be operated flawlessly in cryptocurrency exchanges, and precautions should be taken for terrorist financing and money circulation.