The absence of clear guidelines for Stablecoin issuers was among the most notable deficiencies noted by the FSB in the country’s regulatory regime. Stablecoins, in general, are tied to traditional fiat currencies like the US dollar and, therefore, represent a significant issue from the perspective of financial regulation.
According to the watchdog, the increased adoption of dollar-denominated digital currencies can pose higher risks regarding foreign exchange and may facilitate 'digital dollarization.' Such actions would reduce the role played by the domestic currency in the economy. The FSB urged Turkish authorities to create special regulations for Stablecoin issuers and supervise cryptocurrency-related entities more effectively.
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