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The Financial Stability Board urged Turkey to strengthen reserve checks, audits and redemption safeguards for foreign-issued stablecoins sold through domestic crypto platforms. Its peer review also called for closer cooperation with issuers' home authorities.
The FSB found that Turkey had made progress on platform registration, licensing and custody separation, but lacked a dedicated stablecoin issuance regime and tailored listing requirements for reserves and peg history. Its recommendations do not impose new restrictions or give holders new redemption rights.
Stablecoins serve as a hedge against lira depreciation and a way to move liquidity between domestic and offshore platforms, the review said. Turkish authorities viewed domestic exposures as modest, while the FSB warned wider adoption could increase currency substitution and capital-flow volatility and pressure bank funding.
Frequently asked questions
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Do the FSB recommendations create new obligations in Turkey?
No. The recommendations are nonbinding and create no immediate legal obligations or restrictions.
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What gaps did the FSB identify in Turkey's stablecoin rules?
The FSB found no dedicated stablecoin issuance regime or tailored listing requirements covering reserves and peg history.
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Would the recommendations give stablecoin holders new redemption rights?
No. The FSB called for clearer redemption safeguards, but its recommendations do not themselves give holders new redemption rights.
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Why does the FSB want cooperation with foreign authorities?
Closer cooperation with issuers' home authorities could help Turkey assess the backing and redemption arrangements of stablecoins issued abroad.
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What financial risks did the FSB associate with wider stablecoin adoption?
The FSB warned that wider adoption could increase currency substitution and capital-flow volatility and put pressure on bank funding.
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