Turkey blocks PancakeSwap for providing crypto services without approval under new licensing rules set in 2024.
CAKE token drops by 0.96% in a day and trading volume falls over 23% after PancakeSwap is banned.
Turkey increases crypto oversight as more people invest in digital assets due to rising inflation and lira instability.
Turkey’s Capital Markets Board has officially blocked access to PancakeSwap. PancakeSwap is a decentralized crypto exchange on Binance Chain. The ban marks the country’s first enforcement move against a decentralized exchange. Authorities cited unauthorized crypto asset service provision as the reason. The CMB also blocked access to CryptoRadar, a platform that compares crypto prices.
https://twitter.com/WuBlockchain/status/1941290580291781080
The decision followed regulatory powers granted in 2024 that allowed the board to restrict unlicensed foreign crypto services. PancakeSwap and CryptoRadar were both found operating without official licenses. As a result, Turkish users can no longer access these platforms.
New Crypto Regulations Shape Market Landscape
Turkey implemented stricter licensing requirements for digital asset platforms earlier this year. The new regulations include detailed KYC procedures and stronger anti-money laundering (AML) controls. Exchanges must also submit a monthly statement of customer accounts and disclose user transaction information.
Turkey seeks to establish accountability and openness in the cryptocurrency domain. The measures align with international regulatory trends. Only licensed platforms can legally serve Turkish customers. Platforms that fail to comply will risk similar restrictions.
Impact on CAKE Token and Market Reactions
After the announcement, PancakeSwap’s native token CAKE declined in value. It decreased 0.96% over the previous day and 5% in the past month. Trading volume also declined by 23.5% thus reaching $50.54 million. The enforcement affected investor sentiment and platform usage across the region.
The ban signals potential future actions. There is also a possibility that decentralized exchanges such as Uniswap and Raydium face similar scrutiny. Analysts believe that platforms lacking Turkish licenses could be targeted next. The regulatory scope could expand to include DEX aggregators and crypto analytics tools.
Crypto Growth Amid Economic Challenges
Turkey has seen rising interest in digital assets amid prolonged inflation and currency instability. Many residents turned to crypto as an alternative investment. In June 2024, the Turkish lira became the third most used fiat for crypto purchases. It surpassed the Euro in crypto transaction volume.
In 2024, the rate of cryptocurrency trading in the country rose to 27%, compared with 25.1% in 2023. This is a trend that shows an increase in the long-term financial options demand. However, with increased activity, authorities now focus on investor protection and market stability.
The CMB has warned against using unlicensed exchanges. They encourage users to move to approved platforms. Any service not in compliance may face operational blocks moving forward.
