Investor protection in capital markets law within the scope of blockchain: Applicable law and arbitration

This thesis examines the effects of blockchain technology on capital markets law from three perspectives. First, it analyzes the criterias for characterizing crypto assets as capital market instruments. In that regard, Turkish law is taken as the main reference, with brief consideration of comparative law and recent regulatory developments. It then discusses whether blockchain can constitute a genuine alternative to the existing intermediated holding system and whether it can address the legal problems observed in that area. Second, the determination of the applicable law in proprietary disputes concerning book-entry securities within the intermediated holding system is addressed in the context of blockchain technology. The difficulties encountered in identifying the applicable law under the traditional structure and the solutions developed are discussed. Subsequently, how blockchain may offer an alternative to that structure and the determination of the applicable law in proprietary disputes concerning crypto securities are evaluated. In the third part, the thesis examines the resolution of blockchain related capital markets disputes through arbitration. It evaluates the dispute resolution mechanisms currently available under Turkish capital markets law and their adaptability to blockchain. It then considers the arbitrability of blockchain-based capital markets disputes (especially in the context of the investor and consumer), the advantages of arbitration and the challenges that may arise at the intersection of capital markets law and blockchain. In conclusion, the thesis sets out the solutions that blockchain offers for issues arising from the intermediated system in capital markets, develops proposals regarding the determination of the applicable law in proprietary disputes involving crypto securities, and presents reform suggestions for establishing an effective arbitration-based dispute resolution mechanism.