ERDEM-NEWSLETTER-2018-metin

232 NEWSLETTER 2018 prospectus or export document would not be applicable to crowdfund- ing. Within the context of the Capital Markets Law, crowdfunding platforms, the crowdfunding, and any other related transactions would not be considered as investment services and activities or ancillary services to be conducted by the investment companies and portfolio management companies regulated under the capital markets legisla- tion. Likewise, crowdfunding would not be subject to the provisions of the stock exchanges, market operators, other organized markets, and the legislation applicable thereto. The Capital Markets Law does not regulate the provisions ap- plicable to the relationship between crowdfunding platforms and the persons collecting monies from the public through crowdfunding, and the supporters and investors who have contributed the funds. It is stated under the Capital Markets Law that the general provisions of Turkish law would apply to the referred relationship. Incompliance with the Law In the event of any incompliance in transactions or actions of a crowdfunding platform with the law, the Capital Market Board is granted with the power to take any kind of measures including, but not limited to, requesting the remedy of the contradiction within the specified period, limiting or canceling the activities. If the Capital Markets Board is informed of a crowdfunding plat- form that is collecting funds from the public without obtaining any authorization as required by the recent amendments to the Capital Markets Law, the Capital Markets Board would notify the Informa- tion and Communication Technologies Authority. The Information and Communication Technologies Authority has the authority to ban access to the respective web site. Although enactment of the crowdfunding is a major step forward for entrepreneurs, gaps remain under the legislation, such as which models will be legally used by the crowdfunding platforms, what the requirements are for a crowdfunding platform or to obtain a crowd- funding license, transitional provisions for the presently operating