Turkey’s regulator bans PancakeSwap, a Binance Chain DEX, for unauthorized crypto services, sparking debate on DeFi restrictions.
Turkey’s capital markets regulator has implemented its initial sanctions against a decentralized crypto exchange, preventing access to Binance Chain DEX PancakeSwap. The watchdog has effectively restricted Turkish users from accessing the platform, citing licensing concerns and unauthorized service provision.
Turkey restricts access to PancakeSwap
Turkey’s Capital Markets Board has restricted access to PancakeSwap, a Binance Chain decentralized exchange (DEX), citing “unauthorized crypto asset service provision.” This is a significant development. According to local reports, this ban is the first regulatory action taken by the country against a decentralized exchange. The global trends align with the CMB’s vision to promote financial security and legal compliance, as nations also increase their supervision of digital assets.
CoinGape reported in April of this year that the Australian authorities initiated a significant assault on 95 firms that were suspected of operating “pig butchering” crypto scams. It has been reported that these companies defrauded customers into investing in deceptive platforms.
PancakeSwap’s native token, CAKE, experienced a significant decline of 3.36% over the past day and a 5% decline over the past month due to this regulatory action. The trading volume decreased by 23.5%, reaching $50.54 million.
Changes in Turkey’s Cryptocurrency Market Regulation
Turkey is a prominent nation striving to establish a presence in the global crypto space. The country’s crypto trading activity increased to 27% in 2024, from 25.1% in 2023, indicating a significant transition toward long-term investment and financial inclusion.
This growth is intriguing, as the county plans to implement new crypto regulations designed to address consumer protection and financial stability concerns. The regulator aims to mitigate the inherent risks associated with cryptocurrencies, such as price volatility and illicit activities.
Enhanced KYC procedures, comprehensive anti-money laundering (AML) protocols, and acquiring operating licenses are essential requirements for crypto exchanges in Turkey. These measures will foster accountability and transparency within the industry.
Turkey has also prohibited using CryptoRadar, a cryptocurrency price comparison platform, in addition to PancakeSwap. Turkish investors are now effectively banned from undertaking transactions through these platforms, as both have been blocked. Similar restrictions may be imposed on any platform that operates without CMB approval. The CMB recommends that investors refrain from using unlicensed crypto exchanges to safeguard their personal data and investments. Additionally, they underscored the significance of collaborating with licensed providers who comply with regulatory requirements.
