Turkey's Capital Markets Board (SPK) has blocked access to decentralized exchange PancakeSwap effective July 4, 2025, citing violations of Article 99/3 and Article 128/1(a) of the Capital Markets Law (No. 6362). The regulator confirmed PancakeSwap was operating without authorization in Turkey's crypto market, specifically facilitating token trading, staking, and yield farming services to Turkish residents without proper licensing.
The enforcement action caused PancakeSwap's native token CAKE to immediately drop 3.36-4% in value, with daily trading volume plunging 23.5% to $50.54 million. The SPK ordered Turkish internet service providers to block PancakeSwap's website, associated social media accounts, and mobile applications. This forms part of a broader crackdown targeting over 60 unregistered crypto and forex platforms.
Authorities emphasized that only licensed entities may operate in Turkey's crypto markets, with this action marking the nation's first major regulatory move against a decentralized exchange. The SPK stated the ban aims to "protect investor rights and prevent illegal financial activities" amid reinforced regulatory frameworks established since 2024.
Analysts warn of ripple effects across the DeFi sector, with potential implications for major assets like BNB and Ethereum as Turkey aligns with global regulatory standards. The action mirrors similar measures previously taken by Russia and Kazakhstan against unlicensed crypto services.
