The Draft Law on Compulsory Enforcement prepared by the Ministry of Justice in Turkey introduces comprehensive regulations concerning the seizure of cryptocurrencies, aiming to resolve ongoing debates. According to a report by Mithat Yurdakul from Milliyet, this draft will prevent debtors from converting assets into cryptocurrencies to escape confiscation. It ensures that these digital assets are included in the scope of enforcement processes.
Cryptocurrencies Incorporated into Seizure Procedures
The draft, prepared by the Enforcement and Bankruptcy Law Science Commission within the Ministry of Justice, provides clarity on the often-debated topic of cryptocurrency confiscation. Debtors will be obligated to report their cryptocurrencies to enforcement offices under the new regulations.
The seizure of cryptocurrencies will be conducted through service providers like exchange platforms. Requests for confiscation will be fulfilled via these institutions. The process of storing and liquidating seized cryptocurrencies will be defined by forthcoming regulations, while appraisals will be conducted based on expert reports.
The framework will establish a clear legal basis for utilizing cryptocurrencies in the collection of debts, thereby clarifying how such assets will be managed during enforcement processes.
New Regulatory Measures for Capital Market Instruments
The draft also encompasses capital market instruments beyond cryptocurrencies. Stocks traded on Borsa İstanbul and similar assets will be converted into cash through market sales based on confiscation requests. The proceeds will be transferred to the account of the enforcement and bankruptcy office.
For assets and usage rights not specified in the law, views will be sought from enforcement courts. Businesses forming commercial integrity will be sold along with their properties in entirety, considering the continuity of business operations and their economic contribution.
Regarding the regulation of installment debt payments, a condition of seizing “enough assets to cover the debt” will be introduced. The maximum installment count will be increased to six, and participation in confiscation will be extended to include the spouse, children, and relatives under guardianship of the debtor.
