FSB Calls on Turkey to Strengthen Regulation of Cryptocurrencies and Stablecoins

The Financial Stability Board (FSB) has urged Turkish authorities to strengthen the regulation of the cryptocurrency market and create a specific regulatory framework for stablecoins. These recommendations are included in the second country review of Turkey, published on November 11, 2026. The document assesses the implementation of international standards developed by the FSB in 2023 for the regulation of crypto-assets and global stablecoins.

The organization noted significant progress by Turkey in establishing legal mechanisms for cryptocurrency companies, including the introduction of registration, licensing, and mandatory control over the custody of client assets. However, the current system does not yet provide full oversight of stablecoin issuers and does not sufficiently track risks arising from cross-border operations. The FSB recommends accelerating the implementation of new requirements, strengthening market participant oversight, and expanding cooperation with foreign regulators.

Turkey Expands Control Over Cryptocurrency Exchanges

Turkish authorities began creating a specific regulatory framework for cryptocurrency services after amendments to the capital market legislation in July 2024. In March 2025, the Capital Markets Board of Turkey (CMB) established additional requirements for the licensing and operation of crypto exchanges and custodial organizations, including capital standards and asset custody conditions. Companies are also required to comply with corporate governance rules, provide financial reporting, and undergo independent audits of information systems.

The regulator paid special attention to the protection of client funds. Under standard conditions, crypto platforms are allowed to hold no more than 5% of client crypto assets in their own wallets, with the remainder to be held by authorized custodial organizations. The FSB notes that the separation of client and corporate assets helps limit the impact of potential issues with individual market participants.

Additionally, Turkey launched a centralized KVMKS system for collecting and reconciling information on cryptocurrency transactions. However, according to the FSB report, the system currently faces delays in data transmission and incomplete reporting from some participants. The transition process from temporary registration to full licensing is also ongoing, as the verification of technical infrastructure and custodial service adequacy takes longer than expected.

FSB Identifies Gaps in Stablecoin Regulation

One of the main issues identified by the FSB is the absence of a separate regulatory framework for companies issuing stablecoins. Currently, operations with such assets in Turkey are partially regulated by general rules for cryptocurrency services and financial payment legislation. However, existing norms do not establish sufficiently detailed requirements for token reserve backing, redemption rights, and mechanisms for maintaining stable value.

The FSB recommends developing rules that take into account the characteristics of stablecoins pegged to traditional currencies, including the US dollar and Turkish lira. In particular, it is suggested to define requirements for reserve composition, transparency of backing information, and the ability for timely token exchange to the base currency. Foreign issuers whose stablecoins are distributed through Turkish cryptocurrency platforms require special attention.

Some restrictions are already in place in the country. Specifically, limits are set for certain transfers between crypto assets at $3,000 per day and $50,000 per month, although exceptions are possible for certain corporate clients after additional verification. The use of cryptocurrencies, including stablecoins, for domestic payments has been generally prohibited since 2021, but subsequent changes in electronic money legislation have raised separate questions about the legal status of some currency-backed tokens.

Stablecoins Heighten Concerns Over Digital Dollarization

According to the FSB, the volume of cryptocurrency transactions in Turkey approached $200 billion in 2025. The country ranked among the top 20 largest cryptocurrency markets in the world and took the first place in this indicator in the Middle East and North Africa. Turkish authorities reported more than 7.1 million cryptocurrency accounts associated with approximately 5.3 million owners, with only about 51% of accounts having a positive balance.

The organization associates the spread of cryptocurrencies and stablecoins in Turkey with high retail investor activity, inflation, and the desire to preserve savings value amid the weakening national currency. Tokens pegged to the US dollar play a particularly important role, being used for storing funds and transfers between local and foreign platforms. At the same time, such operations may increase the financial system's dependence on foreign currency.

The FSB report specifically examines the risk of digital dollarization, where residents increasingly use dollar-denominated digital assets instead of national currency instruments. As this practice spreads further, fluctuations in cross-border capital flows may intensify, and the structure of bank deposits may change. However, the organization notes that at the current scale of the crypto market's connections with the traditional financial system, the corresponding risks remain limited and require further monitoring.

International Regulator Calls for Enhanced Information Exchange

The FSB recommends that Turkish authorities create a more systematic mechanism for assessing risks arising in the cryptocurrency market and spreading to traditional financial organizations. It is proposed to use data from existing reporting systems, on-chain analytics, and information on international transfers. This approach should help identify asset concentration, large cross-border flows, and potential liquidity threats.

Another task identified by the organization is to expand cooperation with foreign supervisory bodies. Cryptocurrency platforms and stablecoin issuers can serve users in multiple countries while remaining outside the direct control of local regulators. Therefore, the FSB suggests developing information exchange mechanisms that will allow more effective monitoring of foreign companies' activities in the Turkish market.

The published report does not introduce new restrictions directly for cryptocurrency users. It outlines directions for the further development of the supervisory system, which Turkey may consider when preparing legislative changes. The timelines for implementing the recommendations and the final parameters of future requirements for stablecoin issuers have not yet been announced.