The Financial Stability Board (FSB), the G20’s financial watchdog, said Turkey has made meaningful progress in bringing much of its crypto-asset market under regulatory oversight, including registration and licensing requirements for crypto-asset service providers. In a peer review published Wednesday, it said the absence of dedicated rules for stablecoin issuers poses a core financial-stability risk. The Capital Markets Board introduced licensing and operational rules for exchanges and custodians in March 2025, including minimum capital thresholds, while custody-asset segregation requirements, a ban on domestic crypto payments and a centralized monitoring platform have added safeguards. The FSB said further measures are needed because Turkey’s largely retail-driven market handled nearly $200 billion in transactions last year and crypto assets and stablecoins have become important hedges against sharp lira depreciation and high inflation. It urged Turkey to establish a formal framework for monitoring financial-stability risks, centralize market data, strengthen supervision and enforcement, and improve cooperation with foreign regulators. The review also highlighted the risk of foreign-exchange-linked digital dollarisation through stablecoins. The recommendations add to regulatory challenges following a $20 billion investment fund scandal that left millions of Turks out of pocket. Turkey’s Finance Ministry outlined plans in June 2025 for additional transaction checks and stablecoin-transfer limits to combat money laundering.