Turkey Blocks PancakeSwap and 45 Other Crypto Platforms

Turkey’s financial watchdog has taken a significant step in regulating its cryptocurrency landscape by blocking access to PancakeSwap, a prominent decentralized exchange (DEX), along with 45 other crypto platforms. This move, initiated by the Capital Markets Board (CMB), aims to curb unauthorized crypto services operating within the country. The CMB's decision to restrict access to these platforms via local internet service providers (ISPs) underscores the regulatory body's commitment to enforcing compliance with local laws. PancakeSwap, known for its lower transaction fees on the Binance Smart Chain, remains operational globally but is now inaccessible to users within Turkey. This development signals a broader crackdown on crypto websites that do not adhere to the regulatory framework set by Turkish authorities.

The blocking of PancakeSwap and other crypto platforms is part of a larger effort to ensure that all financial services, including those related to cryptocurrencies, are conducted in accordance with the country's legal standards. The CMB's actions are aimed at protecting investors and maintaining the integrity of the financial system. By imposing these restrictions, the regulatory body seeks to prevent unauthorized activities that could potentially harm consumers and undermine the stability of the financial market. The impact of this regulatory move extends beyond PancakeSwap, as it sets a precedent for how decentralized exchanges and other crypto platforms will be treated in Turkey. The CMB's decision to block access to these platforms sends a clear message to the crypto community that compliance with local regulations is non-negotiable. This development is likely to prompt other decentralized exchanges and crypto service providers to reassess their operations in Turkey and consider obtaining the necessary licenses to continue operating legally within the country.

Turkey’s crackdown reflects a broader regulatory push. Since March, the CMB has held full oversight over crypto asset service providers operating in the country, with new frameworks in place to govern licensing and compliance. In February, rules went into effect requiring users to provide identifying information for crypto transactions above 15,000 Turkish lira (about $425). While buying and holding crypto remains legal, the country banned digital asset payments in 2021—a move that drew backlash from parts of the crypto community. This week’s enforcement puts Turkey in line with other countries that blacklisted unregistered or non-compliant crypto services. Turkey recently tightened its crypto regulations, introducing stricter anti-money laundering measures and client identification policies in late 2024. The new rules require users to provide identifying information for transactions exceeding 15,000 Turkish lira ($425). This Anti-Money Laundering (AML) measure is said to prevent illicit fund transfers and terrorism financing via cryptocurrency. Crypto service providers in Turkey must comply with stricter customer identification measures, but only for transactions surpassing the $425 threshold. For smaller transactions, there is no requirement to collect such information. Effective Feb. 25, 2025, the regulation mandates that providers also verify the identity of users transferring funds from previously unregistered wallet addresses. If a provider cannot obtain sufficient customer information, the transaction could be deemed “risky,” allowing the service provider to halt the transfer or consider other measures, such as limiting the business relationship.

The blocking of PancakeSwap and other crypto platforms in Turkey reflects the government's proactive approach to regulating the cryptocurrency sector. As the use of digital assets continues to grow, regulatory bodies around the world are grappling with the challenges of overseeing this rapidly evolving industry. Turkey's actions demonstrate a commitment to ensuring that crypto services are provided in a manner that protects consumers and maintains the stability of the financial system. This regulatory stance is likely to influence how other countries approach the regulation of decentralized exchanges and crypto platforms in the future.