Turkish Regulators Set Sights on DeFi After PancakeSwap Ban

Hold onto your hats, crypto fans! After dropping the hammer on PancakeSwap, Turkey's watchdogs are eyeing a full-blown crackdown on other DeFi platforms and wallets. The heat is on!

The shockwaves from Turkey's recent PancakeSwap (CAKE) takedown are still rippling through the DeFi scene. Word on the street is that other services might be next on the chopping block. This juicy gossip spilled out during a heated panel at the Istanbul Blockchain Week, where the regulators weren't holding back.

Get this: a transcript straight from the regulators' mouths landed on our desk, and it's clear they're tightening the screws. Under the new rules, DEXs and even those slick non-custodial wallets will have to dance to the same tune as the big centralized players. No more free passes!

But hold up, it's not all doom and gloom. Ali İhsan Güngör, the bigwig at the Capital Markets Board of Türkiye, dropped a bombshell. He said the crackdown follows what they call the "dissemination principles." So, if a DeFi service is out there waving the Turkish flag and shouting from the rooftops, they better play by the local rules.

Güngör didn't mince words: "A Turkish citizen can, entirely of their own free will, receive services from another institution abroad, as capital movements are already free. But if you're a DeFi outfit setting your sights on Turkey with all that flashy promotion, advertising, or marketing, you're in our crosshairs."

Turkey Bans PancakeSwap for Promotions to Its Citizens

And the hits just keep coming. Güngör spilled the beans: "We've already started slamming the door on these websites." It sounds like they're talking about that July 4th smackdown on PancakeSwap and 46 other unlucky sites.

The regulators pulled no punches, ordering internet providers to block PancakeSwap's domain in the country. They even went after the associated mobile apps and social media accounts. But here's the kicker: they didn't spill the beans on how exactly PancakeSwap was targeting Turkish users.

Here's the thing about PancakeSwap: it's a decentralized beast with no official branches or legal entities in Turkey. That means it's gonna have a tough time wrangling those crypto service provider licenses they're suddenly needing.