Binance has announced that it is ending some services in South Africa to comply with the regulations. The move follows a warning issued by the South African financial regulator that Binance Group was not authorized to give financial advice or provide intermediary services in the country.
Cryptocurrency exchange Binance announced changes to its offerings in South Africa on Friday. Noting that it “is constantly evaluating its product and service offerings to comply with local regulations,” Binance said it will “stop offering” futures, options, margins and token products to leverage to South African users.
Binance ceases some services in South Africa
The exchange continued, “Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions.” Furthermore, “Users will no longer be able to manually reduce or close their positions after 6th January 2022 11:59 PM (UTC). Thereafter all remaining open positions will be closed.”
The FSCA warned the public that Binance Group was not authorized 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. Following the FSCA’s notice, Binance issued a statement claiming that “Binance.com does not provide financial advice or render any intermediary services.”
This announcement followed a warning issued in early September by South Africa’s financial regulator, the Financial Sector Conduct Authority (FSCA).
Regulators in many jurisdictions worldwide have been heavily scrutinizing Binance, including those in the U.K., Netherlands, Singapore, Hong Kong, Malaysia, Thailand, Lithuania, Italy, and Canada. U.S. authorities are also investigating Binance for possible market manipulation and insider trading.
- Crypto Exchange Binance Cancels Some Services In South Africa After Regulator Warning
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