Turkey sets sights on DeFi platforms after PancakeSwap ban

Non-custodial wallets and DEXs could fall under Turkey’s crypto rules if they actively market to users within the country.
Turkish regulators may expand the crackdown on DeFi platforms after banning PancakeSwap for allegedly promoting its services to Turkish citizens.

Turkey’s recent decision to block PancakeSwap has raised concerns that more decentralised finance (DeFi) services could soon face similar enforcement. The move came after the Istanbul Blockchain Week, where regulators outlined a stricter framework for overseeing crypto platforms.

Updated guidelines require DEXs and non-custodial wallets to follow the same rules as centralised platforms if they promote services to Turkish citizens. According to Ali İhsan Güngör of the Capital Markets Board, institutions promoting to users in Turkey fall within the country’s regulatory scope.

Although capital movement remains unrestricted, regulators have begun blocking access to DeFi platforms that directly advertise or promote within the country.

Turkish authorities ordered internet service providers to block access to PancakeSwap and 46 other websites. Mobile apps and social media accounts tied to those platforms were also affected.

PancakeSwap, a decentralised protocol with no registered presence in Turkey, cannot apply for a crypto service provider licence, making it vulnerable under the new enforcement rules.

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