Watchdog urges Turkey to tighten digital asset rules for $144B crypto economy

Turkey should do more to regulate its $144.5 billion cryptocurrency market despite recent progress, an international financial watchdog said on Wednesday. The recommendation arrives as a deepening financial scandal rattles the country’s markets, a crisis that could potentially reinforce the popularity of cryptocurrencies among local investors and Turkish citizens navigating economic uncertainty and inflation. Details: In a peer review of Turkey’s crypto-asset regulations published by the Switzerland-based Financial Stability Board, the watchdog acknowledged significant progress made by local authorities but called for further measures to address potential financial stability risks. Founded in 2009, the FSB was established by the G20 to monitor risks to the global financial system.Turkish authorities have brought much of the sector under regulatory oversight, noted the FSB’s review, by introducing registration and licensing requirements for crypto-asset service providers. The country has also established a centralized data platform to monitor crypto activity.