Turkish regulators have indicated that following the recent ban on PancakeSwap, other decentralized finance (DeFi) services and wallets may also face regulatory scrutiny. This development was discussed during a panel at the Istanbul Blockchain Week, where regulators outlined new enforcement criteria that apply to DeFi services.

Under the new framework, decentralized exchanges (DEXs) and non-custodial wallets will be required to adhere to the same regulations as centralized services. This move aims to ensure that DeFi products marketed to Turkish citizens comply with local regulations, even if the services are provided by entities based abroad.

Ali İhsan Güngör, Executive Vice Chairman of the Capital Markets Board of Türkiye, explained that while Turkish citizens can freely access services from foreign institutions, any DeFi service that actively targets Turkish users through promotion, advertising, or marketing will be subject to Turkish regulations. This principle of dissemination is central to the new regulatory approach.

Güngör also mentioned that access blocks have already been imposed on websites that promote DeFi services to Turkish citizens. The recent ban on PancakeSwap, along with 46 other websites, is a clear example of this enforcement. The regulators ordered internet service providers to block PancakeSwap’s domain, associated mobile apps, and social media accounts within the country. However, the specific channels used by PancakeSwap to target Turkish users were not detailed.

PancakeSwap, being a decentralized protocol without any registered branches or legal entities in Turkey, faces challenges in obtaining the necessary crypto service provider licenses in the country. This regulatory environment suggests that other DeFi services may need to adapt their operations to comply with Turkish regulations or risk similar bans.