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The Capital Markets Board of Türkiye, the country's market regulator, announced on Wednesday that decentralized finance products such as PancakeSwap have been banned in Türkiye, marking the first sanctions imposed on a decentralized cryptocurrency exchange.
On the other hand, along with PancakeSwap, access to CryptoRadar — a cryptocurrency price comparison platform — has also been blocked.
The reason for the decision was cited as “unauthorized crypto asset service provision.” Also, this decision was made within the scope of the authority granted to the CMB last year to request the blocking of access to the websites of crypto asset service providers (CASPs) based abroad that operate without permission and target users in Türkiye.
Launched in September 2020 on the BNB Chain, PancakeSwap stands out as a platform that operates with an AMM (Automated Market Maker) system and is a pioneer in the decentralized finance sector. According to CoinMarketCap data, the platform's daily trading volume exceeds $7 billion, accounting for 30.49% of all decentralized exchange transactions. This performance has propelled PancakeSwap ahead of its Ethereum-based rival Uniswap, establishing it as the leading platform in the sector.
The native token of PancakeSwap, CAKE, currently has a market capitalization of $749 million.
In the past, the board blocked many cryptocurrency exchanges that had not applied for a crypto license in Türkiye.
The decision regarding PancakeSwap is significant, as it marks the CMB’s first move against decentralized exchanges and raises concerns that Uniswap, Raydium, and other similar platforms could be next.
With access to both platforms now blocked, investors won’t be able to carry out transactions through these sites anymore.
Any platform operating without approval from the Capital Markets Board (CMB) could face the same result. In Türkiye, crypto service providers have to follow certain rules set by the CMB, including obtaining a license.
Officials warn investors in Türkiye not to invest in unlicensed cryptocurrency exchanges for the safety of their capital and personal data.
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