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South African financial regulator warns against crypto trading via Binance

The South African financial regulator has warned the population against trading on the market-leading crypto exchange Binance.

As the “Financial Sector Conduct Authority” (FSCA) wrote on Friday, the Seychelles-based Binance Group does not have the necessary authorization to operate as a financial services provider in South Africa. In fact, Binance is based in the Seychelles and the Cayman Islands.

As the FSCA states in its letter, among other things, South African crypto users organize access to the crypto exchange via a Telegram group.

In addition to the explicit warning about Binance, the supervisory authority also reminds the population that trading in crypto currencies in South Africa has not yet been regulated: “So if something goes wrong, you won’t get your money back and you cannot claim damages.”

Accordingly, the FSCA warns the South African public to pay close attention to the legal status of trading platforms in general before investing.

Binance has not yet responded to Cointelegraph’s request.

With its warning, the South African financial supervisory authority places itself in line with the authorities of other countries, which have recently increasingly taken action against the market-leading crypto exchange.

For example, the financial supervisory authority of Singapore last ordered on Thursday that Binance had to cease business operations in the country.

The Dutch central bank again found in August that the trading platform’s business activities are illegal in their country. Italy, Germany, Japan, Thailand, Great Britain and the USA also come to similar judgments.

Binance repeatedly emphasizes that it is in close contact with the supervisory authorities of the various countries and that it strives for cooperation and compliance with the law.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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