Turkey Blocks PancakeSwap CryptoRadar Over Unlicensed Services

Turkey's Capital Markets Board (CMB) has taken a significant step in regulating the cryptocurrency sector by blocking access to PancakeSwap and CryptoRadar for Turkish users. This action marks the first time the country has imposed sanctions on a decentralized exchange, signaling a shift in its approach to digital asset services. The CMB cited the unauthorized provision of crypto asset services as the reason for the ban, which is part of a broader crackdown on unlicensed platforms. The regulator has taken legal action against 46 websites, including other decentralized exchanges and crypto platforms, for operating without the necessary licenses.

The decision to block PancakeSwap and CryptoRadar follows regulatory powers granted in 2024, which allowed the CMB to restrict unlicensed foreign crypto services. Both platforms were found to be operating without official licenses, leading to the restriction of access for Turkish users. This move is in line with the stricter licensing requirements implemented earlier this year, which include detailed Know Your Customer (KYC) procedures and stronger anti-money laundering (AML) controls. Exchanges are now required to submit a monthly statement of customer accounts and disclose user transaction information, aiming to establish accountability and openness in the cryptocurrency domain.

The ban on PancakeSwap has had an immediate impact on its native token, CAKE, which decreased by 0.96% in value over the previous day and 5% in the past month. Trading volume also declined by 23.5%, reaching $50.54 million. This enforcement has affected investor sentiment and platform usage across the region, signaling potential future actions against other decentralized exchanges such as Uniswap and Raydium. Analysts believe that platforms lacking Turkish licenses could be targeted next, with the regulatory scope potentially expanding to include DEX aggregators and crypto analytics tools.

Turkey's increased interest in digital assets is driven by prolonged inflation and currency instability, with many residents turning to crypto as an alternative investment. In June 2024, the Turkish lira became the third most used fiat for crypto purchases, surpassing the Euro in crypto transaction volume. The rate of cryptocurrency trading in the country rose to 27% in 2024, compared with 25.1% in 2023, indicating a growing demand for long-term financial options. However, with increased activity, authorities are focusing on investor protection and market stability. The CMB has warned against using unlicensed exchanges and encourages users to move to approved platforms, stating that any service not in compliance may face operational blocks moving forward.