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Türkiye's regulatory body could bring restrictions on several decentralized finance (DeFi) products and services, following a ban on the decentralized exchange service, PancakeSwap.
After Türkiye banned PancakeSwap, the possibility of banning other DeFi products also came up. At the Istanbul Blockchain Week event, organizers shared their thoughts on this possibility during a panel discussion.
According to a text shared by the cryptocurrency news space Crypto.news, under the new regulations, DEXs, wallets, and other centralized service providers will be subject to the rules, but this does not mean that all such services will be banned.
According to Ali Ihsan Gungor, deputy chairman of the executive board of the Capital Markets Board of Türkiye, the regulations are based on principles known as “spread principles.” In particular, DeFi products targeting Turkish citizens will be required to comply with local regulations.
Gungor was referring to the regulation published on July 4, saying, “We have started blocking websites of this kind.” Access to PancakeSwap and 46 other websites was blocked by a regulation published on July 4. Regulators had requested internet service providers to block social media accounts and mobile applications.
PancakeSwap is a decentralized protocol by design and does not have a legal personality. As a result, it does not have a registered branch in Türkiye, and obtaining a license as a cryptocurrency service provider would be challenging for PancakeSwap.
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