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Binance Halts Marketing in Turkey as Exchange Struggles Under Global Compliance Challenges

Last Updated July 3, 2024 2:58 PM
James Morales
Last Updated July 3, 2024 2:58 PM

Key Takeaways

  • Binance has halted marketing in Turkey and will wind down Turkish language support.
  • The decision reflects Turkey’s new crypto regulation and could precipitate a wider retreat.
  • In the UK, Binance responded to the FCA’s move to restrict its marketing activity by suspending new signups.

Binance is scaling back its operations in Turkey, marking the latest retreat for the once-dominant exchange, which has struggled to reinvent itself in an era of increasing global crypto regulation.

While trading services will remain open to Turkey-based users for now, Binance’s decision to wind down Turkish language support and cease marketing activities in the country could presage a wider withdrawal.

Is Binance About to Pull Out of Turkey?

In an announcement  on Tuesday, July 2, Binance referred to Turkey’s new crypto regulations, which were adopted by parliament on June 26.

“At Binance, we have been closely monitoring regulatory developments in Turkey […] As such, we are taking all necessary measures to ensure legal compliance,” the announcement stated.

Although the exchange will still cater to Turkish users and process Lira deposits and withdrawals, the move to suspend marketing draws an important parallel with another country where Binance is on the back foot. 

Lessons From the UK

In the UK, the final nail in the coffin for Binance came when the FCA imposed restrictions  on its local marketing partner preventing it from promoting crypto services.

Already hamstrung by the decision of its GBP payments partner Skrill to cut ties with the exchange, Binance suspended new UK signups shortly after the FCA blocked its ability to promote its services.

If Binance’s Turkish operations follow a similar path, further moves to pull out of the market could soon follow.

Binance’s Uneven Comeback

Unable to process fiat transactions or onboard new customers, in the UK, Binance has operated as a shell of the exchange it once was for the last 8 months. But elsewhere, the firm has managed to stage a comeback. 

Having faced serious opposition from a string of EU regulators, Binance has now secured licenses in France, Spain, Italy, Lithuania, Poland and Sweden. This makes it easy for EU users to gain access to the platform, even in countries like Belgium where regulators have imposed restrictions.

Binance has also successfully navigated bans in India and Japan, negotiating with regulators and forging partnerships with local exchanges to reintroduce its services.

However, in the end, these workarounds haven’t been enough to save the company from what has been a significant decline in dominance during the last 2 years. 

With Binance’s European operations significantly handicapped by ongoing regulatory challenges and Binance.US clinging on for dear life in the wake of last year’s settlement with the Justice Department, places like Turkey have become an important lifeline for the firm. If it loses access to those markets too, the exchange’s fall from grace will be complete.

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