Turkey Bans PancakeSwap Citing Unauthorized Crypto Services

Turkey’s financial regulator, the Capital Markets Board (CMB), has taken a significant step by banning decentralized exchanges (DEXs) like PancakeSwap. On July 4, the CMB blocked access to PancakeSwap (CAKE) and the crypto comparison platform CryptoRadar for Turkish citizens. The regulator cited “unauthorized crypto asset service provision” as the reason for the ban, stating that these platforms did not have the required authorization to operate in the country. This decision was made under powers granted to the agency in 2024, when new legislation allowed the CMB to block foreign crypto service providers operating without a license.

The ban on PancakeSwap is part of a broader regulatory crackdown aimed at curbing unauthorized crypto asset services. In March, the CMB introduced updated regulations on licensing and oversight of crypto asset service providers. The new rules mandated stricter transparency and reporting requirements, including the provision of monthly account statements for all customers and the disclosure of details of all user transactions. Despite this crackdown, Turkey still permits regulated exchanges to operate. In March 2025, Turkish bank Bank Pozitif partnered with Taurus to launch a suite of crypto services.

This move marks the first time a decentralized exchange has been targeted by enforcement in Turkey. Previously, only centralized platforms, like Binance and FTX, were banned in the country. This raises concerns that other DEXs like Uniswap (UNI) and Raydium, as well as other crypto platforms, including DEX aggregators and analytics dashboards, could also be banned. The enforcement came after significant crypto asset adoption in the country, driven by prolonged inflation that has pushed many citizens to invest in crypto assets for relative stability compared to the national currency.

The regulatory actions taken by Turkish authorities reflect a growing trend among governments worldwide to impose stricter controls on the crypto industry. As the popularity of cryptocurrencies continues to rise, regulators are increasingly focused on ensuring that these digital assets are used in a manner that protects consumers and maintains financial stability. The blocking of PancakeSwap serves as a reminder that decentralized exchanges are not immune to regulatory scrutiny and must adhere to local laws and regulations to operate legally.

Analysts warn that other decentralized exchanges, such as Uniswap and Raydium, could be next in line for similar regulatory actions. This crackdown on unauthorized crypto services in Turkey is part of a broader effort to enforce compliance with the country's Capital Markets Law, which grants the CMB full regulatory control over crypto asset service providers offering services to residents. Since February, crypto users in Turkey have been required to provide identifying information when executing transactions of roughly $425 or more, further tightening the regulatory environment for digital assets.