south africa binance pulls banner

Binance pulls services in South Africa due to regulator warnings

Binance has announced on October 8 that they will be terminating a few services available in South Africa. Starting January 6, 2022, Futures, Options, Margin and Leverage token trading will no longer be supported. This announcement was made in response to warnings set forth by South African regulators. 

The Financial Sector Conduct Authority (FSCA) in South Africa issued a warning against Binance last October 8, insinuating that the crypto giant is edging towards breaking the local regulations: 

‘The Financial Sector Conduct Authority warns the public to be cautious and vigilant when dealing with Binance Group as they are not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.’ 

As a response to this statement, Binance mentioned its desire to comply with any and all local regulations in the country. On the same day, the platform made new changes to its product offerings. 

Moreover, all traders in South Africa are no longer allowed to make new accounts while existing accounts have 90 days to finish all transactions and remove their funds from the platform. 

Binance’s statement also included a risk warning and a specific timeline as to when these services will be closed. It stressed that trading on the platform brings substantial risks both in making income and losses and that the platform aims to regulate all of these transactions. 

‘Our aim is to create a sustainable ecosystem around blockchain technology and digital assets. Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators,’ Binance stated. ‘We are committed to working constructively in policy-making that seeks to benefit every user.’  

There are currently no developments as to how the Binance platform will go about future operations or product offerings in South Africa. As of now, the platform still operates in the country but with more limited and heightened restrictions. 

South Africa is not the only country to have been involved with Binance in terms of regulation problems. Other countries such as Singapore, Italy, Canada and Netherlands among others have also criticized the platform. 

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