Binance, one of the world’s largest cryptocurrency exchanges, has announced the termination of its retail referral program in Turkey in order to comply with local regulations. This decision comes just months after the exchange registered its services with Turkey’s Capital Markets Board, signaling a shift in the company’s operations in the country.
In a statement released on Wednesday, October 23, Binance stated that the discontinuation of the referral program was necessary to adhere to “local law and regulation.” As a result, all referral codes accessed through Binance.com are now invalid for users in Turkey, and the feature is no longer available. However, existing referrers in Turkey will still receive commissions from invitees who registered before the program’s termination.
This move aligns with Turkey’s evolving stance on cryptocurrency regulation, particularly following the approval of a comprehensive crypto bill that enforces strict compliance measures. The legislation, supported by ruling party chairman Abdullah Güler, imposes significant penalties for non-compliance, including fines of up to $182,600 and potential prison sentences for unauthorized exchanges.
In response to the changing regulatory landscape, many international crypto firms have rushed to secure licenses to operate legally in Turkey. In fact, 47 exchanges have already applied for licenses in the country. Despite previous considerations, Turkey’s Vice President Cevdet Yilmaz confirmed that the government will not impose a tax on profits from crypto or stock trading this year. Instead, the focus has shifted to refining existing tax regulations, particularly by narrowing tax exemptions, following a decline in the Turkish stock market earlier this year.
Overall, Binance’s decision to sunset its referral program in Turkey reflects the company’s commitment to compliance with local regulations and the changing regulatory environment in the country. As the crypto industry continues to evolve, it is likely that more exchanges and firms will need to adapt to meet the requirements set forth by regulators in various jurisdictions.