South Africa’s Regulatory Authority FSCA Says Binance Is Not Authorized

The South African Financial-Sector-Conduct-Authority (FSCA) warned Binance Group (the biggest crypto exchange across the world according to the trade volume), stating that the firm does not have the authorization to deliver any intermediary services or financial advice. The FSCA cautions the community to be vigilant and careful while trading with the company because it is neither authorized to offer intermediary services nor financial advice. The regulator has referred to the FAIS Act (Act, 2002) of South Africa in its notice on 3rd September.

While commenting on the respective restriction, a spokesperson from Binance stated that this event could be taken by them as an opportunity to illuminate that the domain Binance.com is not involved at all in offering intermediary services or financial advice. It pointed towards a Telegram group that Binance-South Africa has created for promoting blockchain education as well as community announcements. The purpose of the group, the spokesperson, focused, is not to provide any kind of financial advice. The spokesperson added that the company Binance does not own any entity called Binance Group within Seychelles.

In its notice, the South African regulator specifically mentioned that the FSCA department or either of the other institutions in the country is not regulating the investments regarding crypto. This statement had been stated by the department in the past, and Binance’s spokesperson referenced it in comments. It was assured by the spokesperson that the organization is dedicated to being collaborative towards the regulators as well as the law enforcement across the globe. The firm, said the spokesperson, provides its self-disclosure voluntarily to the Financial-Intelligence-Centre of the country.

The spokesperson elaborated that being a participant of the FIC project, Binance does carefully adhere to the directions imposed by the department.  It strongly goes along with the obligations of the FIC Act when it comes to establish and then verify the identities of the consumers, their trade records, as well as reporting about any unusual or suspicious transactions violating section 29 mentioned in the FIC-Act.

South Africa has turned out to be one among many other countries. The regulators thereof have released warnings against the firm Binance as well as its sub-divisions. Some of these countries, such as Canada, Thailand, Japan, Italy, the United Kingdom, and Singapore, have taken measures against the exchange. It has been reported that the authorities of the United States are also investigating Binance.