Turkey Restricts Access to 46 Cryptocurrency Platforms, Including PancakeSwap Platform
In a significant move, Turkey has taken a strict and proactive regulatory approach to the decentralized finance (DeFi) and broader crypto sector, as marked by the ban of 46 crypto-related websites, including the major decentralized exchange PancakeSwap. This crackdown reflects the government's intent to assert full control and oversight over crypto activities within its borders.
The Turkish Capital Markets Board (CMB) has been granted full control over crypto asset service providers (CASPs), including foreign and decentralized platforms. This expanded authority allows the CMB to enforce licensing, compliance, and operational guidelines, and to block unlicensed services targeting Turkish users.
In early July 2025, Turkey blocked access to PancakeSwap and 45 other crypto-related websites for operating without authorization. This is the first time Turkey has targeted a major decentralized exchange, signaling a new era where DeFi platforms will face regulatory scrutiny similar to centralized entities.
Strict compliance and anti-money laundering (AML) measures have been implemented since early 2025. These rules are aligned with international AML standards (FATF), including identity verification for transactions above roughly $425, mandatory waiting periods for crypto transfers (48 hours minimum, 72 hours for first withdrawals), detailed transaction explanations, and ongoing audits of anti-money laundering systems by CASPs.
While crypto payments are banned for purchases, Turkish residents are still allowed to buy, hold, and trade digital assets. However, the regulatory environment is clearly tightening, with an emphasis on formalizing and controlling all crypto-related activities, including DeFi, to prevent illicit activity and protect investors.
This regulatory crackdown could potentially stifle innovation and participation in decentralized finance as regulatory barriers and enforcement increase. The ease of access to DeFi protocols may decrease in Turkey, which could have implications for the future of DeFi globally.
It is worth noting that the use of Virtual Private Networks (VPNs) by Turkey could push users towards using platforms that are not under Turkish jurisdiction. The prohibition of crypto exchanges, as seen in India in 2025, may lead to a transition to foreign platforms rather than the abolition of crypto activities entirely.
In conclusion, Turkey’s regulatory stance as of mid-2025 is heavily focused on bringing all crypto services—including decentralized exchanges like PancakeSwap—under strict governmental control through licensing and compliance, enforcing anti-money laundering laws, and blocking unauthorized platforms. This crackdown indicates the government’s aim to formalize the crypto market while restricting unregulated decentralized services to protect the financial system and investors. The future evolution of the Turkish digital finance sector will be crucial in determining the direction of DeFi regulation globally.
- The Turkish Capital Markets Board (CMB), with its expanded authority over crypto asset service providers (CASPs), is now responsible for enforcing regulations on both domestic and decentralized platforms, including the implementation of licensing, compliance, and operational guidelines, and the blocking of unlicensed services targeting Turkish users in the crypto exchange and DeFi sectors.
- As a result of the regulatory crackdown in mid-2025, Turkey has blocked access to major decentralized exchanges such as PancakeSwap, signaling a new era where DeFi platforms will face scrutiny similar to centralized entities, with implications for the future of DeFi globally.
- Strict anti-money laundering (AML) measures have been implemented in Turkey, requiring identity verification for transactions, mandatory waiting periods for crypto transfers, detailed transaction explanations, and ongoing audits of AML systems by CASPs, demonstrating the Turkish government's intent to formalize the crypto market while restricting unregulated decentralized services to protect the financial system and investors.
