Binance to Halt Retail Referral Program in Turkey, Citing Local Regulations
Binance has announced it will terminate its retail referral program in Turkey this coming October 23, 2024, in response to the country’s new evolving cryptocurrency regulation. The move is said to take effect since Turkey increases its compliance measures for all digital asset platforms operating in the country.
For example, a previous referral scheme rewarded commission to those referring others into the platform. However, Binance, while announcing the new rules, explained that all such referral codes would become invalid for Turkish users. The exchange has, however, made it clear that it would continue paying commissions to those who had referred new customers before the termination of the program.
Increased Crypto Regulations in Turkey
The move by Binance follows after Turkey’s step toward tighter control over crypto exchanges-a process that has gained more speed throughout 2024. This year saw the government of Turkey pass comprehensive cryptocurrency legislation targeting the solidification of the regulatory regime for digital assets. New regulations have brought greater fines against platforms operating in contravention of the law. Illegal swaps are now fined up to $182,600, while multiple offenses may result in more serious punishment, including jail time for the operators of exchanges.
The new regulatory framework was instituted by high-ranking member of Turkey’s ruling party, Abdullah Güler. Along with other lawmakers, he has been trying to establish a more orderly, secure environment for digital currency trading in a bid to strike a proper balance between innovation on one side and protection for investors on the other.
Strategy of Compliance by Binance
Binance has aligned its activities with the regulations in Turkey. A few months back, the exchange, alongside 46 other platforms, applied for and received licenses from the Turkish Capital Markets Board to legally operate within the country. The licensing falls under a broad global strategy by Binance to follow the local regulations in every region where the company operates.
Its attempts to toe the line of compliance are indeed not limited to Turkey alone. Binance has been at the receiving end of various regulatory hurdles across different countries. This August, the exchange shelled out $1.7 million as a settlement for unauthorized derivatives trading with Brazilian regulators. The Indian authorities, on their part, asked the platform to pay $86 million in taxes.
No New Taxes on Crypto in 2024
Despite the tightening regulations, Turkey has now given confirmation that no new taxes on profits from cryptocurrencies will be implemented this year. Turkish Vice President Cevdet Yilmaz explained that the focus for the government is to perfect the existing tax laws with the intention of stabilizing the financial sector.
