Kentucky will appeal the decision at the end of the month.
The NCAA found Kanter received $33,033 in excess of his expenses from the Turkish team Fenerbache during the 2008-2009 season. Although participating with the club's senior team is no longer specifically against NCAA rules, accepting benefits above actual and necessary expenses is.
Kanter played three seasons with the Turkish club, competing primarily with the team's under-18 junior team. However, he did compete with the senior team during the 2008-2009 season,.
"Enes took advantage of an opportunity to play at the highest level available to him, but the consequences of receiving payments above his actual expenses is not compatible with the collegiate model of sports that our members have developed," Kevin Lennon, the NCAA's vice president of academic and membership affairs said in a statement released by the organizing body.
According to the NCAA, "actual and necessary expenses" are those required for practice and competition, such as meals, travel to practices and competition and medical insurance.
Kanter will be allowed to resume practicing with Kentucky while the school's appeal is pending, however, he will not be allowed to compete or travel with the team.
According to the NCAA, Kentucky agreed with the finding that Kanter accepted the sum of more than $33,000 in excess of necessary expenses on Oct. 25 and asked for a ruling on his eligibility, which came Thursday.
"We appreciate that the NCAA has an appeals process to allow this young man to defend the uniqueness of his circumstances," Kentucky athletic director Mitch Barnhart said. "Enes is a great kid who is working hard in the classroom and enjoying being a college student. It is our hope that he will be allowed to continue his academic and athletic career at Kentucky."