FSB pressures Turkey regulators to lock down foreign stablecoins
Summary
The Financial Stability Board urged Turkey to strengthen oversight of foreign-issued stablecoins distributed through local exchanges. Recommendations include checks on reserve composition and transparency, issuer safeguards for maintaining stable value, clear redemption rights, and closer cooperation with overseas regulators. Turkey has expanded crypto-platform licensing and custody controls but lacks stablecoin-specific issuance and listing rules. The review creates no new legal obligations or customer redemption rights. The FSB also called for clarity on how payments and e-money laws apply to fiat-backed stablecoins, warning that wider adoption could increase currency substitution, capital-flow volatility and pressure on bank funding.
