In September 2018, the Capital Markets Board ("CMB") had issued an announcement on its

website, declaring that a secondary legislation for crowdfunding was underway.

Just recently, on January 4, 2019, CMB published the Draft

Communiqué on Equity Crowdfunding No. III-35/A ("Draft Communiqué")[1]. In

the announcement, CMB states that the Draft Communiqué aims to ensure the effective

penetration of the crowdfunding model into the capital markets legislation and

create a regulatory framework for crowdfunding activities.

The Draft Communique addresses principles on (i)

crowdfunding platforms, (ii) activities of crowdfunding platforms, (iii)

subscription to crowdfunding platforms and the campaign process and (iv) areas

for the use of the funds and venture capital firms. The Draft Communique

requires crowdfunding platforms to apply to CMB for listing and comply with the

specific requirements set forth by CMB.

The Draft Communique is open to public comments until

February 4, 2019.

Authors: Gönenç Gürkaynak, Esq. and Ceren Yıldız, ELIG

Gürkaynak Attorneys-at-Law

(First published by Mondaq on January 8,  2019)

[1] Full text of the announcement and the Draft

Communiqué is available at http://www.spk.gov.tr/Duyuru/Goster/20190103/0