Binance Limits Services in South Africa
Binance Holdings Ltd. has announced termination of services in South Africa for regulatory compliance. The move came after Binance Group was warned by the South African financial regulator, the Financial Sector Conduct Authority (FSCA). FSCA maintains that Binance Group will have to cease offering unauthorized financial advice or intermediary services in South Africa.
Per Binance’s recent announcement, its services offered in South Africa are now limited. Binance states it regularly evaluates its product and services to “remain compliant with local regulations.” As a result, Binance will now “cease offering” futures, options, margin, and leveraged tokens to users in South Africa.
Binance announced the following:
With immediate effect, South African 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.
Binance’s derivative products and leveraged trading have now ceased in South Africa. Current users of these services, Binance says, will be granted a 90-day grace period for closing their ongoing positions.
In the said grace period, users can top-up margin balances to save from margin calls and liquidations. But, increasing or starting new positions will not be allowed after 6th January 2022 11:59 PM (UTC).
The FSCA stated that Binance Group is warned under the purview of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.
After receiving a notice from the FSCA, Binance officially maintains:
Binance.com does not provide financial advice or render any intermediary services.
Binance categorically maintains it does not have any ties or association whatsoever with Binance Group. Binance tweeted the following:
Binance Group’ is not a Binance.com entity, please be mindful of scammers pretending to be associated with Binance.com.
