Binance imposes restrictions on South African users

Fri 08 Oct 2021 ▪ 17h27 ▪ 3 min de lecture - par James Taylor

Binance has recently come under fire from multiple regulators around the world. According to them, the company’s activity is too suspicious, and its service delivery system isn’t secure enough.

So, in a number of countries, including Japan, Great Britain, the Netherlands, Italy, Poland, Thailand, and Hong Kong governments have issued warnings to investors advising them to avoid contact with the exchange.

Binance ceases offering products to South African users

In early September, South Africa’s Financial Sector Conduct Authority (FSCA) has also warned the country’s public against dealing with Binance. In addition, they noted that the exchange isn’t authorised to give any financial advice or render intermediary services.

A month after the warning, Binance announced the termination of service offerings to South African users. The cryptocurrency exchange has ceased offering margin, leveraged tokens, crypto derivatives, futures, and options. Binance motivated these actions by the company’s desire to comply with South African regulators.

Users from South Africa will no longer be able to open new accounts for the aforementioned products, and their positions must be closed within the next 90 days, otherwise, they will be closed automatically.

It’s worth noting that this is not the first time Binance has imposed restrictions on its customers. The cryptocurrency exchange introduced a similar policy against the citizens of El Salvador.

Binance and regulators

Binance is still actively trying to enhance its credibility. For instance, the head of the company Changpeng Zhao has recently published a post about Binance’s future policy and its plans to ramp up compliance.

Binance’s main step in its compliance “journey” is the rejection of a decentralised business model. According to the company’s CEO, this form of management makes it much more difficult to gain approval from regulators with strict licensing regimes.

Changpeng Zhao added that Binance will soon establish several headquarters in different parts of the world, with one of the offices located in Ireland. Binance also launched three different subsidiary entities in September 2021.

Finally, Binance hired Tigran Gambaryan, a former special agent at the Internal Revenue Service, as VP of Global Intelligence and Investigations in order to adjust Binance’s exchange rate in accordance with the regulators’ requirements.

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James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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