Absa Blocking Binance
A South African Bank, Absa has reported blocking credit cards for users, who invest in cryptocurrencies on international exchange platforms. This claim surfaced when one of their clients reported that they received a text message from Absa. This text informed them of the suspension of online payments that lead towards Binance, a leading crypto exchange.
According to Absa, the new regulations dated, 8th June, were put into immediate effect due to Binance not being compliant. A few weeks ago, South Africa’s Intergovernmental Fintech Working Group (IFWG), recommended that it should consider putting regulations on cryptocurrency.
Binance Rejects Accusations
Binance on the other hand rejects all the assertions. They claim that they are fully compliant with all the current crypto regulations that were within the entire Africa region. Instead, they suggest that the blockade might have caused due to the foreign exchange rules in place in the South Africa Reserve Bank (SARB).
The Role of SARB
Meanwhile, on SARB’s website, it states that cryptocurrencies are not legal tenders anymore and they cannot approve transactions of such nature. Previously, the bank, Absa, did allow the clients to take part in crypto transactions and exchange, but now flips and mentions that it is not permissible in South Africa and points towards the SARB for comprehensive analysis of the report.
