Binance announced termination of some services in South Africa. This is because of the regulators order and threats. More so, The South Africa financial regulator issues a warning to Binance Group while, noting it was not authorized to give any financial advice or render any intermediary services in the country.
Binance Ceases Some Services in South Africa
Furthermore, Cryptocurrency exchange Binance on Friday makes announcements regarding some changes to its offerings in the country. Additionally, saying that it “constantly evaluates its product and service offerings to comply with local regulations,”
Also, Binance goes ahead to say it will “cease offering” futures, options, margin, and leveraged tokens products to South African users.
The company adds,
“With immediate effect, South Africa users will be restricted from opening new accounts for these products…”
“Users will have 90 days to reduce and close their positions for these products.”
Furthermore, The exchange continues,
“Users will be able to top-up margin balances to prevent margin calls and liquidations,..”
“…but they will not be able to increase or open new positions.”
Meanwhile,
“Users will no longer be able to manually reduce or close their positions…”
“..after 6th January 2022 11:59 PM (UTC).”
“…Thereafter all remaining open positions will be closed.”
Consequently, this action is due to a warning issued by South Africa financial regulator. The Financial Sector Conduct Authority (FSCA) makes this warning in early September.
Subsequently, The FSCA warned the public that Binance Group doesn’t have the authority to give any financial advice. Also, render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.
However, Binance reiterated to the statement by claiming that,
“Binance.com does not provide financial advice or render any intermediary services.”
Lastly, Binance is receiving many scrutiny from many Regulators worldwide. Especially, those in the U.K., Netherlands, Singapore, Hong Kong, Malaysia, Thailand, Lithuania, Italy, and Canada and U.S.
