Binance Ends Retail Referral Program in Turkey, Cites Local Regulations

Binance has announced it will terminate its retail referral program for users in Turkey, following compliance requirements with local regulations as of October 23, 2024.

The move comes several months after Binance and other crypto exchanges registered their services with Turkey’s Capital Markets Board (CMB), signaling a shift toward stricter local compliance.

Binance Referral Program Termination in Turkey

Binance explained in a statement that the program, which previously allowed users to earn commissions by referring new customers to the platform, is no longer accessible for retail users in Turkey.

Binance halts Turkish referral program over regulatory concerns #crypto #cryptocurrency #cryptonews

— MEME.nto (@MEME_nto_crypto) October 23, 2024

The company stated, “All referral codes accessed through Binance.com are rendered invalid, and this feature is no longer available to Turkey users.”

Despite the termination of the referral program, Binance reassured its Turkish users that other services on the platform would remain unaffected.

Additionally, those who referred new customers before the program ended will still receive commissions for users who signed up prior to the cutoff.

This decision underscores Binance’s efforts to comply with Turkey’s evolving crypto regulations, which have introduced stricter compliance measures for platforms operating within the country.

Stricter Crypto Regulations in Turkey

Turkey has been moving toward tighter regulations on cryptocurrency platforms, a trend that has gained momentum in 2024.

Earlier in the year, the Turkish government passed comprehensive cryptocurrency legislation, which increased scrutiny on crypto platforms.

The bill, supported by key figures such as Abdullah Güler, the ruling party’s chairman, was designed to impose substantial penalties on exchanges that fail to comply.

Unauthorized exchanges now face fines as high as $182,600, with more severe penalties including prison sentences for persistent non-compliance.

In response to these regulations, Binance and 46 other crypto exchanges have applied for licenses to legally operate in Turkey, avoiding the harsh penalties outlined in the new legislation.

This reflects Binance’s broader global strategy of adhering to local regulations in the regions it operates, including countries like Turkey where crypto laws are rapidly evolving.

Binance Responds to Turkey’s Changing Regulatory Landscape

In addition to regulatory changes, the Turkish government has taken steps to clarify its position on cryptocurrency taxation.

In September 2024, Turkish Vice President Cevdet Yilmaz confirmed that there would be no new taxes on crypto or stock trading profits for the year, despite earlier considerations.

Cumhurbaşkanı Yardımcısı Cevdet Yılmaz, kripto paralar ve borsa için vergi düşünmediklerini açıkladı.

Aksi yönde bir karar verilmediği sürece kripto paralarda vergilendirme yok 🇹🇷 pic.twitter.com/7lTtVEWh8N

— PRIME 𝕏 (@primecrypto_tr) September 24, 2024

The government is instead focused on refining existing tax laws to stabilize the financial sector after a turbulent year in the Turkish stock market.

This regulatory environment is part of a global trend affecting Binance’s operations. The company has been facing increasing scrutiny from regulators in various countries.

In August, Binance settled with Brazilian regulators for $1.7 million to resolve issues around unauthorized derivatives trading, and Indian authorities recently demanded $86 million in taxes as the exchange re-entered the market after months of suspension.