​​South African Regulators Tangle With Binance Over Authorization

The FSCA cautioned its citizens from interacting with crypto and reminded them that there is no regulation in the country.

By
Kyle Heise
on
September 5, 2021
Category:
Blockchain News

Stern Warning From FSCA

The Financial Sector Conduct Authority (FSCA) of South Africa warned their citizens against using any services from BINANCE GROUP.
It clarified that said organization has no authorization to do intermediary financial services or give financial advice in the country.

The statement from the FSCA, issued on Friday, September 3rd, added that no agency monitors or regulates crypto-related investments in the country. They warned citizens of potential loss of funds and other precarities in crypto that do not have recourse and offered little in regard to actual protection for citizens. 

“The Financial Sector Conduct Authority (FSCA) warns the public to be cautious and vigilant when dealing with BINANCE GROUP as they are not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa,” reads the declaration from the regulatory body. 

The comments were not the first towards Binance by a similar body as the crypto exchange has faced a plethora of warnings in recent months. The notice seems as much a public service announcement for South African citizens as it is a warning to Binance.

Source

Binance Unphased

One first note is that there is no crypto exchange legally titled Binance Group, as stated in the FSCA warning. The official name for the proprietor of Binance.com is Binance Holdings Ltd. The world’s largest crypto exchange is based in Seychelles and does not operate in South Africa under another name.

Binance has been open to working with regulators as of late and claims that the FSCA does not have the authority to act against Binance. Binance previously worked with the Financial Intelligence Centre as the country’s main regulator to comply with South African laws. 

“We would like to take this opportunity to clarify that Binance.com does not provide financial advice or render any intermediary services," clarified the Binance spokesperson who was contacted by Yogita Khatri of The Block.  Binance is “committed to taking a collaborative approach in working with regulators and law enforcement globally.” 

According to Coin Telegraph, Binance has reached out to the FSCA for clarification regarding who has authority in the country. Regulatory bodies worldwide have also pushed back against Binance lately, including several European countries, the Cayman Islands, and more.

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. Go Giants!

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