FSB urges Turkey to further improve crypto-asset regulation, plans to establish a dedicated stablecoin regulatory committee.

November 11: The Financial Stability Board (FSB) released a peer review report on Turkey, noting that Turkey has made substantial progress in recent years in strengthening the regulation, supervision, and oversight of crypto-asset markets, but still needs to further improve its regulatory framework to align with the FSB's Global Regulatory Framework for Crypto-Asset Activities.

The report noted that Turkey has brought most activities in the crypto-asset market within the regulatory perimeter and has introduced registration and licensing requirements for crypto-asset service providers (CASPs). Turkey has also implemented strict asset custody segregation measures and prohibited the use of crypto-assets for payments domestically, in order to limit the transmission of related risks to the payment and banking systems. In addition, Turkish authorities have established a centralized data platform for monitoring crypto-asset activities.

However, the FSB believes that Turkey still needs to take further measures in the following areas: implementing the financial stability monitoring framework, establishing a dedicated regulatory regime for stablecoins, strengthening supervision and enforcement, and promoting cross-border regulatory cooperation and information sharing. The report also noted that Turkey has previously completed the construction of its crypto-asset regulatory framework, but its stablecoin regulatory regime still needs improvement. This review aims to promote Turkey's further implementation of the recommendations under the FSB's global regulatory framework.