Turkey Blocks PancakeSwap Access Over Unlicensed Crypto Services

Turkey’s Capital Markets Board (CMB) has taken a significant step in its ongoing efforts to regulate the cryptocurrency market by blocking access to PancakeSwap, a leading decentralized exchange (DEX) on the BNB Smart Chain. This move is part of a broader crackdown on unauthorized crypto asset services targeting Turkish residents. The ban was issued under Article 99/3 and Article 128/1(a) of the Capital Markets Law (No. 6362), which empowers the regulator to restrict platforms operating without a license in the country’s financial markets.

PancakeSwap, along with several other websites, was listed in the CMB’s July enforcement bulletin. The regulator ordered Turkish internet service providers (ISPs) to block access to the platform, citing that PancakeSwap enables financial transactions such as token trading, staking, and yield farming without complying with Turkish licensing requirements. These activities fall under capital market operations, which require formal regulatory approval in Turkey. The CMB also ordered the blocking of associated social media accounts and mobile applications linked to unauthorized financial services.

This action is part of a wider crackdown on unregistered crypto and forex platforms. Over 60 websites were included in the latest enforcement notice, encompassing both centralized and decentralized platforms. Turkish regulators have previously warned investors about the risks of engaging with unlicensed service providers. PancakeSwap remains operational globally, but access from within Turkey is now restricted via local ISPs. The CMB emphasized that these steps are aimed at protecting investor rights and preventing illegal financial activities in digital asset markets.

The move by the CMB is indicative of a growing trend among global regulators to align their stance with international standards on crypto oversight. More regulatory actions against decentralized protocols may follow as Turkish authorities continue to tighten their grip on the cryptocurrency market. This crackdown underscores the importance of compliance with local regulations for crypto platforms operating in Turkey, as well as the need for investors to be cautious when engaging with unlicensed service providers.

PancakeSwap, which had over $325 billion in trading volume last June alone, is among leading players in the decentralized finance (DeFi) sector. It is listed together with Uniswap and Curve as among leading DEXs. The CMB did not provide the detailed reasoning as to how it determined the services were unauthorized. PancakeSwap had not responded to media inquiries at publication.

It is legal for Turkish citizens to buy, hold, and trade cryptocurrencies, yet banned their use in payments in 2021. Authorities have since improved on monitoring cryptocurrency-related activities. A Turkish law company was set to sue the payment ban to court throughout May, which represented ongoing legal disagreements over the application of crypto within the country.

Turkey is part of a huge list of countries, ranging from Russia and Kazakhstan to Venezuela and the Philippines, that have isolated access to cryptocurrency platforms based on suspicions of non-conformity with rules or linkage to crime. As global regulators move to impose tighter regulation on decentralized networks, crypto users in Turkey now face yet another limitation on their ability to use international DeFi services.