The Financial Stability Board (FSB) published its second country peer review of Türkiye, calling on the government to strengthen its oversight of cryptocurrencies and stablecoins.
The global financial watchdog acknowledged that Türkiye has made significant progress in regulating the crypto market. These efforts include introducing strict capital requirements, banning domestic cryptocurrency payments, and requiring crypto custodians to keep customer assets separate under the Capital Markets Board rules introduced in March 2025.
🇹🇷 As part of our peer review programme, we looked at progress made by Türkiye in implementing the FSB recommendations for the regulation and supervision of crypto-assets and stablecoins.
https://t.co/bM3ZQ41UrF https://t.co/MtePpXpm1l— The FSB (@FinStbBoard) November 11, 2026
However, the FSB warned that major regulatory gaps remain in a market driven largely by retail investors and processing nearly $200 billion in annual transactions. The board identified four areas that require further action: introducing a dedicated regulatory framework for stablecoin issuers, establishing a formal system for monitoring financial stability risks, strengthening supervision of registered crypto platforms, and expanding international information sharing to monitor offshore issuers.
Read also: Turkey Liquidates US Treasury Holdings to Defend Lira Amid Regional Conflict
Stablecoin adoption raises concerns over Türkiye’s financial stability
The FSB expressed particular concern about Türkiye’s lack of specific regulations for stablecoin issuers. It warned that foreign-issued stablecoins operating without adequate oversight could increase digital dollarization in the country.
Digital dollarization occurs when people increasingly use foreign currency or dollar-pegged digital assets instead of their domestic currency. In Türkiye, this could weaken demand for the Turkish Lira and make it harder for authorities to manage monetary policy. To address these risks, the FSB recommended stricter checks on stablecoin reserves, clear redemption rights for holders, and detailed disclosures explaining how issuers maintain their tokens’ dollar pegs.
However, the board’s concerns do not necessarily reflect the financial pressures facing ordinary Turkish citizens. The country has one of the highest cryptocurrency adoption rates globally, partly because many residents use digital assets to protect their savings against the declining value of the lira.
On X Web3 ecosystem researcher, @Peer Oracle, questioned why the FSB would want to restrict stablecoin access when citizens have clear financial reasons for turning to dollar-pegged tokens. Peer argued that people are using stablecoins because they have lost confidence in the domestic currency.
turkey has one of the highest crypto adoption rates on earth precisely because people don’t trust the lira. now the FSB wants to clamp down on stablecoins there. gee, i wonder why people reach for dollar-pegged tokens. you really can’t see it?
— Peer Oracle (@PeerOracleX) November 11, 2026
Other market participants supported the FSB’s position. Amk argued on X that stronger and more formal regulation is necessary to protect Türkiye’s traditional banking sector from systemic risks associated with cryptocurrency market volatility.
@TheBlockCo Stronger oversight protects Turkey’s financial system from crypto risks.
— AMk.Crypto 🧢 (@leeky_k_crypt) November 11, 2026
Türkiye faces pressure to strengthen crypto supervision and capital controls
Beyond stablecoin regulation, the FSB called on Turkish authorities to improve their supervision of licensed cryptocurrency platforms and continuously monitor risks that could spread from crypto markets into traditional foreign exchange markets.
Although the government considers tighter controls necessary for consumer protection and financial stability, some Turkish citizens remain suspicious of further regulatory restrictions.
Also on X, Lorenco expressed this concern, arguing that Türkiye’s worsening economic and political conditions could push the government toward increasingly restrictive financial policies. Lorenco suggested that the government’s regulatory measures may have less to do with protecting investors and more to do with preventing citizens and businesses from moving their money outside the country. In this view, tighter oversight could become a way to trap domestic capital rather than simply improve market safety.
@TheBlockCo Because #Turkish economy,monetary & politics are crumbling and they will try to enforce every kind of “dictatorship policy” to not let people and capitalist flee their jurisdiction
— Lorenco (@Lorenco1997al) November 11, 2026
Türkiye may need stronger international cooperation to monitor offshore crypto markets
The FSB also warned that Türkiye cannot manage cryptocurrency-related financial risks through domestic regulations alone. Digital asset markets operate across national borders, allowing citizens to access foreign exchanges and liquidity providers even when local platforms face strict restrictions.
For this reason, the board recommended that Turkish regulators expand cooperation and information sharing with their international counterparts. Stronger cross-border cooperation would help authorities monitor foreign stablecoin issuers and offshore cryptocurrency exchanges that operate outside Türkiye’s direct licensing framework.
The FSB wants Turkish regulators to establish more effective information-sharing channels with offshore jurisdictions. These arrangements would allow authorities to track activities involving foreign-issued stablecoins, identify potential financial stability risks, and monitor transactions that could bypass domestic regulations.
Ultimately, the recommendation reflects a wider challenge facing regulators: enforcing national cryptocurrency rules in a market where users, exchanges, and digital assets can operate across multiple jurisdictions.
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