According to September 3, 2021 reports, South Africa’s Financial Sector Conduct Authority (FSCA) has warned the country’s public against interacting with the Binance crypto exchange. South Africa becomes the latest to warn against using the Binance platform, insisting that the exchange is not authorized to operate in the nation.
In an official statement issued today, the FSCA said that Binance Group an ‘international firm’ registered and is hosted in Seychelles, was not allowed to render financial services within the nation. Notably, Binance is headquartered in Seychelles and The Cayman Islands.
The FSCA indicated as part of the warning that South Africans were mainly using a Telegram group to access Binance’s cryptocurrency exchange services in the nation.
Besides warning against using Binance exchange services, the financial watchdog also reminded South Africans that cryptocurrency investments are not regulated within the nation. The FSCA statement added:
“As a result, if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone.”
The financial watchdog also urged the South African people to confirm the registration status of different entities in the investment and financial sector before transacting with such firms. Binance did not respond instantly to reporters who requested comments on this issue.
This statement by the FSCA is just the latest in a series of warnings and clear bans against Binance by financial regulatory authorities in many jurisdictions. On September 2, the Monetary Authority of Singapore ordered that Binance should stop offering services in the nation over a possible infringement on payment regulations.
In August, the Dutch central bank claimed that Binance was operating within the Netherlands illegally. The cryptocurrency exchange has come under massive scrutiny from regulators from the United Kingdom, Italy, the United States, Thailand, and Japan among others.
On its part, Binance has insisted that it is willing and ready to cooperate with regulators and it has enacted a mandatory identity validation scheme for all users.