South African Regulatory Authority Pushes Binance Back

Binance’s spokesperson said that the company was deeply cooperating with South Africa’s Financial Intelligence center regarding the compliance of the law. The company responded to the warnings issued by the South African Financial authorities.

The company’s official statement has cleared that at the moment Binance is closely working with the local regulators to comply with the law, and the company is not offering any sort of financial advice and services to the local people in South Africa.

Though the country’s regulatory and financial authorities have pushed Binance against the wall, Binance is doing everything to cooperate with the regulatory authorities to bring transparency within the crypto sector of South Africa.

Moreover, on Friday Binance issued the statement that questioned the authority of FSCA. Binance said that FSCA does not have the power to regulate “crypto trading activities,” in South Africa. Moreover, the exchange also refused to remain cornered and opposed the allegations raised by the South African FSCA.

Binance rejected all the claims about South African citizens using the Binance South Africa Telegram group and services to carry out the crypto-related trade. Furthermore, Binance’s officials said that Binance promoted blockchain-related education and awareness, except that no other services were being offered.

Even though these concerns against Binance were raised by the South African government agency FSCA, Binance argued that currently, they are working with the country’s Financial Intelligence Center, a major network working with Binance.

The company has also contacted the FSCA authorities and asked for clarification that in what capacity the warnings are being issued. In case of any potential concern, Binance is ready to cooperate with FSCA as well.

FSCA warned South African citizens to be aware and exercise caution while using any of the Binance services and in any investments via the Binance platform. However, Binance responded that company has offered no such services to any of the South African citizens.

Over the years South African government has had an extremely friendly policy towards crypto. However, in recent months South African authorities claimed that they are looking forward to reviewing their policies regarding the trade of digital assets. This could be a step forward in the direction to bring in more transparency in the digital assets trade.

The regulatory authorities in South Africa also hinted to bring in the structured changes in the country’s crypto-related regulations. The scams and financial risks involved in crypto trading demands a higher degree of strict regulations.

The authorities further said that the protection of people’s money is the government’s priority. Binance over the years has faced security-related provisions in countries like Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, and Singapore.