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Binance exchange fires back at South Africa regulator

ZBC

TL;DR Breakdown

  • Binance exchange says it operates legally in South Africa.
  • Exchange denies all allegations leveled on it by FSCA.
  • South Africa becoming crypto friendly slowly.

After allegations on Friday by South Africa’s Financial Sector Conduct Authority (FSCA) that Binance exchange operates illegally in the country, the exchange has fired back at the regulator.

Binance exchange responded to these allegations in a statement noting that the FSCA has no authority to query its status in the country.

The exchange stated in its rebuttal that South Africa’s Financial Intelligence Centre (FIC) was the “major regulator” in the country and not the FSCA that queried them.

Binance exchange stated that it has been working closely with the FIC to remain compliant with South African laws. The exchange also said that it has not been offering financial advice or intermediary services to South Africans.

Binance exchange rebuff more damning allegations

After stating that the FSCA should not question its legal status and that it does not offer financial advice to South Africans as alleged, the exchange said there are no Telegram groups in the country where locals access its services.

Binance exchange said it promoted Blockchain education but did not provide financial service or advice to locals.

However, the exchange noted that it had gotten in touch with the FSCA to clarify its warning and address any possible concerns.

“Binance.com is registered with the FIC as a voluntary self-disclosure institution,” said the exchange.

“Binance complies with the FIC Act obligations relating to establishing and verifying of clients’ identities, record keeping and reporting suspicious or unusual transactions,” the statement read in part.

South Africa and cryptocurrencies

The African country used to be one hostile country as far crypto is concerned until recently.

Local regulators made a U-turn and said they would re-evaluate their stance in the industry. In July, the country’s Intergovernmental Fintech Working Group said it would be laying the groundwork for the “phased and structured” regulation of cryptocurrencies in South Africa.

FSCA, on the other hand, has continued to preach stricter regulation for crypto in the country sighting scams and other financial risks.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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