Business · Companies · 3 hrs ago
FSB urges Turkey to regulate stablecoins beyond payment ban
The Financial Stability Board urged Turkey to create dedicated stablecoin rules in an assessment released on November 11.
Stablecoins are digital assets designed to keep a steady value, often by tracking the US dollar.
Demand for dollar-linked coins has grown as Turkey’s lira has lost value, raising concern about people shifting away from the national currency.
Turkey has banned stablecoin payments, but people can still hold the coins and send them abroad.
The FSB says a payment ban alone cannot contain the financial risks, which could affect Turkey’s currency and foreign exchange market.
It recommends rules that address stablecoins’ specific risks, as well as stronger oversight of issuers and international cooperation.
The assessment does not say what steps Turkey will take next.
The Financial Stability Board (FSB) urged Turkey to create a dedicated regulatory framework for stablecoins.
The FSB said banning stablecoin payments alone cannot fully prevent financial risks.
It warned that stablecoin holdings and transfers could affect Turkey’s currency and foreign-exchange market.
The recommendation comes amid demand for dollar-linked stablecoins as the lira loses value.
The FSB also called for regulation of stablecoin issuers and international cooperation.
- Who
- The Financial Stability Board.
- What
- It recommended that Turkey establish a dedicated framework to regulate stablecoins.
- When
- The FSB released its assessment on November 11, according to the article.
- Where
- Turkey.
- Why
- A payment ban alone may not address risks from holding and transferring stablecoins, including risks linked to the lira’s falling value.
This story does not have two clearly opposing sides.
The FSB released its assessment of Turkey and recommended a dedicated stablecoin regulatory framework.
Hankyung reported on the FSB’s recommendation.
- Regulator
- Financial Stability Board (FSB)
- Country assessed
- Turkey
- Assessment release
- November 11
- Risk highlighted
- Stablecoin payments can be banned while holdings and overseas transfers remain possible
- Recommended measures
- Stablecoin-specific regulation and international cooperation