Turkey Blocks 46 Crypto Websites Including PancakeSwap To Curb Unauthorized Services

Turkey’s Capital Markets Board (CMB) has taken a significant step in regulating the cryptocurrency industry by blocking access to 46 cryptocurrency websites, including the prominent decentralized exchange (DEX) PancakeSwap. This move is part of a broader campaign to curb unauthorized crypto services and ensure that all crypto-related activities comply with the country's financial regulations. The CMB, Turkey’s primary financial regulator, has initiated legal proceedings against these crypto services, signaling a tough stance on unregistered platforms.

PancakeSwap, known for its success alongside other DEXs like Uniswap and Curve, has been a major player in the cryptocurrency market. The CMB’s decision to block PancakeSwap marks the first time a DEX has been targeted in Turkey. This action underscores the government's determination to regulate the cryptocurrency industry, which has seen a surge in popularity and trading volume. The CMB’s efforts are likely driven by concerns over unauthorized services and the potential for illicit activities, such as ‘pig butchering’ scams, where wealthy crypto holders are defrauded.

Turkey has seen a notable increase in crypto trading, with a rise from 25.1% in 2023 to 27% in 2024. This growth has attracted the attention of regulators, who are concerned about the price volatility of digital assets and the potential for illegal activities on the blockchain. In response, Turkish authorities have implemented new standards for the crypto industry, including Know Your Customer (KYC) and licensing requirements. PancakeSwap’s shutdown may be due to its lack of appropriate licenses to operate in the country, despite its decentralized nature.

The CMB has outlined a new cryptocurrency agenda for 2025, giving it full authority to regulate crypto service providers. This agenda includes identifying and regulating crypto service providers, even those that operate as DEXs. The CMB has also mandated identification checks for crypto transactions exceeding $425 and requires a 20-letter note to be appended to the blockchain for all cryptocurrency activities. These measures aim to create a clear paper trail and prevent money laundering. Crypto payments have been banned in Turkey since 2021, and the government continues to adopt stringent measures to control crypto trading.

Turkish officials have emphasized the importance of internal risk management strategies for Crypto Service Providers, including procedures to address money laundering and reporting suspicious activities to authorities. Failure to comply with these regulations may result in an external review by government officials and potential revocation of licenses. The Turkish government has set threshold limits for crypto transactions, including a daily limit of $3,000 and a monthly limit of $50,000, to prevent money laundering. These measures are part of a broader effort to tackle illegal activities, including gambling, within the country.