Turkey Blocks PancakeSwap and 45 Other Crypto Websites in Regulatory Crackdown

Turkish financial regulators have taken a significant step in their ongoing efforts to control the digital asset market by blocking access to the decentralized exchange PancakeSwap and 45 other crypto-related websites. This move is part of a broader regulatory crackdown aimed at curbing unauthorized digital asset services within the country.

In a July 3 bulletin, the Capital Markets Board (SPK) announced legal action against these websites, citing provisions of Turkey’s Capital Markets Law. The regulator stated that the targeted platforms were offering crypto services to residents without the necessary authorization, thereby violating the country's regulatory framework.

PancakeSwap, one of the world’s largest decentralized exchanges (DEXs) alongside Uniswap, is among the platforms affected by this regulatory action. It remains unclear how Turkish authorities determined that PancakeSwap was directly offering services within the country. Other blocked sites include Cryptoradar and various investment and trading platforms, indicating a tightening of oversight in the crypto sector.

Under regulatory changes implemented since March, the SPK has been granted full authority over crypto asset service providers offering products to Turkish residents. This includes enforcing standards and compliance requirements to ensure that all digital asset services operate within the legal boundaries set by the Turkish government.

Turkey has maintained a strict stance on crypto payments since banning their use for purchases in 2021. However, residents are still permitted to buy, hold, and trade digital assets. Earlier this year, Turkey mandated that crypto users provide identifying information for transactions above approximately $425, further tightening controls on digital asset transactions.

Globally, several countries, including Kazakhstan, Venezuela, Russia, and the Philippines, have also blocked crypto-related websites, citing unauthorized operations and the risks associated with illicit transactions. Turkey’s regulatory approach is part of its broader strategy to formalize and control digital asset markets amid rising adoption.

This regulatory crackdown underscores Turkey’s commitment to formalizing the digital asset market and ensuring that all service providers comply with the country’s legal and regulatory standards. By blocking access to unauthorized platforms, the SPK aims to protect investors and maintain the integrity of the financial system. The move also highlights the challenges faced by decentralized exchanges and other crypto-related services in navigating the complex regulatory landscape of different countries.