Binance, a prominent cryptocurrency exchange, responds to a warning from South Africa’s Financial Sector Conduct Authority. They state that it is in conformity with local authorities. Therefore, it is not providing financial advice or intermediary services to citizens.
Binance Fights Back
Binance suggested in a Friday statement that the FSCA lacked ability. As the body did not have the authority to oversee “crypto-related assets” in South Africa. The exchange also refuted claims that South Africans utilised the Binance South Africa Telegram channel to access cryptocurrency exchange services. Additionally, claiming that the online community promoted blockchain education but did not offer financial advice or services.
Although the FSCA is a government body in South Africa, Binance stated that the country’s Financial Intelligence Centre was the “primary regulator”. Moreover, with whom it had been working to comply with local regulations. The exchange claims it has contacted the FSCA for clarification on its September 3 warning and resolve any potential regulatory issues about Binance.
The exchange stated, “Binance.com is registered with the FIC as a voluntary self-disclosure institution”. Binance follows the FIC Act’s requirements for establishing and confirming clients’ identities, maintaining records, and reporting suspicious or anomalous transactions.
The FSCA warned the South African people to be cautious about any investments in Binance Group. Binance is an “international business” based in Seychelles. According to Binance’s answer, the firm has no related organisation in the archipelago nation with such a name.
South Africa and Cyrpto
South Africa’s attitude on cryptocurrency had appeared to be ambiguous until recently when local officials indicated that they would be reconsidering their position on digital assets. In July, the country’s Intergovernmental Fintech Working Group said it would set the basis for “phased and structured” cryptocurrency legislation in South Africa. The FSCA, on the other hand, has used bitcoin frauds and financial concerns to push for stricter restrictions.