Binance cryptocurrency exchange has responded to a warning from South Africa’s Financial Sector Conduct Authority by stating that it is in conformity with regulators and is not providing financial advice or services to residents.
Binance hinted in a Friday statement that the Financial Sector Conduct Authority, or FSCA, lacked authority because the body did not have the authority to oversee “crypto-related assets” in South Africa.
The exchange also rebutted claims that South Africans used the Binance South Africa Telegram channel to obtain access to cryptocurrency exchange services, claiming that the online community promoted blockchain education but did not offer financial advice or services.
Despite the fact that the FSCA is a government organization in South Africa, Binance stated that the country’s Financial Intelligence Centre was the “primary regulator” with whom it had been working to comply with local regulations.
The exchange claims it has contacted the FSCA for clarification on its September 3 warning and to address any potential regulatory issues about Binance.
The exchange stated, “Binance.com is registered with the FIC as a voluntary self-disclosure institution.” Binance follows the FIC Act’s requirements for establishing and confirming clients’ identities, maintaining records, and reporting suspicious or irregular transactions.
The FSCA warned the South African people to be cautious about any investments in Binance Group, which it defined as a “international corporation” based in the Seychelles. According to Binance’s statement, the corporation has no linked entity in the archipelago nation with that name.
South Africa’s attitude on cryptocurrency had appeared to be ambiguous until recently, when local officials declared that they would be reconsidering their position on digital assets.
In July, the country’s Intergovernmental Fintech Working Group announced that it will build the framework for “phased and structured” cryptocurrency regulation in South Africa. The FSCA, on the other hand, has used bitcoin frauds and financial dangers to push for stronger rules.
Financial regulators in many countries have claimed Binance’s parent firm or affiliates are not authorized to provide certain financial services to their nationals, prompting the FSCA warning.
Authorities in Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, and Singapore have released comments cautioning investors about Binance or claiming it is functioning unlawfully.