Turkey Bans PancakeSwap DEX Over Licensing Issues, Marking First Action Against a Decentralized Exchange
Turkey’s financial watchdog has officially blocked access to PancakeSwap, a decentralized exchange (DEX) built on Binance Chain, citing the provision of unlicensed crypto asset services. The move marks the country’s first regulatory action targeting a DEX.
Key Points:
- Turkish authorities have banned PancakeSwap and CryptoRadar over licensing violations.
- This is the first time Turkey has sanctioned a decentralized exchange.
- The native token, CAKE, dropped 3% in the last 24 hours following the announcement.
The Capital Markets Board (CMB), Turkey’s top financial regulator, enforced the ban on PancakeSwap in response to what it described as unauthorized crypto service offerings. This step reflects the CMB’s broader goal to strengthen investor protection and bring digital asset activity into regulatory compliance—an approach echoed by regulators around the world.
Earlier this year, Australian authorities took similar steps, cracking down on dozens of firms accused of operating fraudulent crypto investment schemes.
Impact on PancakeSwap
In the wake of Turkey’s ban, PancakeSwap’s token CAKE experienced a price decline of 3.36% over the past day and 5% over the last month. Trading volume also fell by 23.5%, down to approximately $50.54 million. 
Regulatory Trends in Turkey
Turkey’s involvement in the crypto sector has grown significantly, with crypto trading participation reaching 27% in 2024, up from 25.1% the previous year. As adoption rises, the government is focusing on stricter regulation to protect investors and address risks such as volatility and financial fraud.
New requirements for crypto platforms in Turkey now include stricter know-your-customer (KYC) processes, anti-money laundering (AML) controls, and mandatory licensing. These regulations are intended to ensure better transparency and consumer safety.
In addition to PancakeSwap, authorities have also blocked access to CryptoRadar, a digital asset comparison site. Turkish users are now effectively restricted from using either platform. The CMB has warned that any exchange operating without proper authorization could face similar sanctions and urged investors to use only licensed, compliant platforms to safeguard their assets and data.
