Turkey has imposed a ban on the operation of decentralized cryptocurrency exchanges, specifically PancakeSwap, citing the absence of licenses.
Ban on PancakeSwap and CryptoRadar
On July 4, local media reported that Turkey's Capital Markets Board (CMB) blocked access to PancakeSwap for the country's citizens. Additionally, access to the crypto comparison platform CryptoRadar was restricted. Authorities explained this action by citing "unauthorized crypto asset service provision," as the platforms lacked the necessary authorization to operate in the country.
Stricter Crypto Regulations
The decision to ban was made under powers granted to the CMB in 2024, when new legislation allowed the agency to block foreign crypto service providers operating without licenses. In March of this year, the CMB introduced updated regulations on licensing and oversight of crypto asset service providers, mandating stricter transparency and reporting requirements.
Context of Crypto Investments in Turkey
Despite the regulatory crackdown, Turkey continues to allow regulated exchanges to operate. Interestingly, the ban on PancakeSwap marks the first instance of enforcement targeting a decentralized exchange, with previous bans focusing on centralized platforms like Binance and FTX. Notably, there has been a significant increase in interest in crypto assets among Turkish citizens amidst prolonged inflation, prompting many to invest in more stable assets.
The ban on decentralized exchanges in Turkey reflects the evolving regulatory landscape of the crypto market in the country, raising concerns about the future of other similar platforms.
