Turkey restricts access to 46 cryptocurrency platforms, among them PancakeSwap.
In a significant move, Turkey is enforcing a stringent regulatory regime on Decentralized Finance (DeFi) and crypto services, including bans on unauthorized platforms. This move aims to bring the sector under tighter state control and combat misuse, although it poses challenges to DeFi growth and innovation in the country.
Since early 2025, the Turkish Capital Markets Board (CMB) has taken charge of regulating crypto asset service providers (CASPs), including exchanges, wallet providers, custodians, and DeFi service platforms. These providers are now required to obtain a special CASP license, subject to strict operational standards, including anti-money laundering (AML) and counter-terrorism financing controls.
Mandatory identity verification rules, aligned with the Financial Action Task Force (FATF) travel rule, require details of parties involved in transactions above approximately $425 (15,000 Turkish Lira) to combat illicit financial activity. New laws also enforce transfer limits, mandatory waiting periods, and detailed transaction descriptions to increase transparency and reduce fraud.
Since mid-2025, regulators have actively blocked access to unlicensed crypto platforms, including prominent decentralized exchanges like PancakeSwap. This crackdown on unauthorized foreign and domestic players could potentially reduce DeFi participation and stifle innovation in Turkey.
However, these measures serve as a strong signal to the crypto industry to comply with Turkey’s regulatory framework or face operational bans and penalties. The government is expected to fully implement the new crypto regulation regime by the end of 2025, with continuing emphasis on licensing, surveillance, and AML compliance.
While Turkish authorities assert a desire to allow lawful crypto operations to flourish, the overall direction is toward stringent oversight to combat financial crime and protect investors. The regulatory environment is likely to remain restrictive, with ongoing scrutiny and possible further action against non-compliant or unlicensed DeFi and other crypto service providers.
Despite these efforts, it is unlikely that the trend towards decentralization will stop in the near future. The demand for digital currencies is growing, especially in countries facing currency fluctuations, such as Turkey. The use of Virtual Private Networks (VPNs) is also prevalent, allowing users to bypass these restrictions and access platforms not subject to Turkish laws.
This latest move targets platforms that have not obtained a license, weakening the notion that decentralized finance (DeFi) can operate independently without any regulatory constraints. The regulatory authority in Turkey has banned 46 digital currency platforms, including PancakeSwap, marking one of the largest crackdowns on a decentralized platform in the country.
This aggressive step by Turkey against illegal activities related to cryptocurrencies follows the 2021 ban on the use of cryptocurrencies as a payment method. In 2024, Turkey's digital currency market witnessed a significant revival, ranking fourth globally. The growth of decentralized trading platforms like PancakeSwap is driving global DeFi growth.
As Turkey tightens its grip on the growing cryptocurrency market, the campaign against cryptocurrency platforms may extend to regulating DeFi in other countries. The future of Turkey's digital finance sector will be determined by state policies, with a clear focus on compliance and control.
- In light of the new regulatory framework, investors in Turkey may need to reconsider their investing strategies, as the Turkish Capital Markets Board (CMB) now requires Decentralized Finance (DeFi) service platforms to obtain a special CASP license and adhere to strict operational standards, including anti-money laundering (AML) and counter-terrorism financing controls.
- Regulation of DeFi and crypto services in Turkey is set to expand beyond border in future, as the government's aggressive steps against unauthorized platforms like PancakeSwap signal potential regulatory action against DeFi in other countries, aiming to combat financial crime and protect investors, while also maintaining stability in the finance sector.
