Binance opposes warnings from South African regulators

In response to the warning from the South African Financial Sector Conduct Authority, the major cryptocurrency exchange Binance stated that it complies with the regulations of local regulators and will not provide residents with financial advice or intermediary services.

In Binance’s Friday statement, the cryptocurrency exchange hinted Warning from the Financial Sector Conduct AuthorityOr the FSCA lacks authority, because the organization has no authority to supervise “crypto-related investments” in South Africa. The exchange also refuted allegations that South Africans used Binance South Africa Telegram Group to obtain cryptocurrency exchange services, saying that the online community promoted blockchain education but did not provide financial advice or services.

Although the FSCA is an agency of the South African government, Binance claims that the country’s financial intelligence center is the “main regulatory agency” and it has been working hard to comply with local laws. According to the exchange, it has contacted the FSCA to clarify its September 3 warning and address any potential concerns that the regulator may raise with Binance.

The exchange stated: “ is registered with the FIC as a voluntary self-disclosure agency.” “Binance complies with the FIC Act’s obligations regarding the establishment and verification of customer identities, record keeping, and reporting of suspicious or unusual transactions.”

In its warning, the FSCA urged the South African public to exercise caution in any investment involving Binance Group, which the group described as an “international company” registered in Seychelles. However, according to Binance’s response, the company does not have an associated entity named after that name in the archipelago country.

Until recently, South Africa’s encryption policy seemed to have been indifferent, and local regulators announced that they would reassess their position on digital assets.The country’s intergovernmental fintech working group stated in July Lay the foundation South Africa’s “phased and structured” regulation of cryptocurrencies.However, FSCA has Sometimes citing cryptocurrency scams And financial risks to promote stricter supervision.

related: Italian financial regulator issues warning on Binance cryptocurrency exchange

Before the FSCA’s warning, financial regulators in different countries stated that Binance’s parent company or its affiliates did not have the right to provide certain financial services to its residents.Authorities in Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan and Singapore have Issue a statement to warn investors to proceed with caution Regarding Binance, it may claim that the exchange operates illegally.