• South African regulator issues a warning to Binance

  • The Financial Sector Conduct Authority (FSCA), South Africa’s key financial regulator, issued a press release on Friday urging the general public to exercise caution and vigilance when dealing with Binance Group.

    It states that the Seychelles-based entity is unauthorized, which means that it is not permitted to provide any financial intermediary services in the country.

    The watchdog goes on to say that cryptocurrencies are still unregulated in South Africa, and that investors risk losing their money if “something goes wrong.”

    Prior to the warning, Absa, a South African bank, reportedly barred its customers from sending payments to Binance through exchanges in early August. It claimed that due to local exchange control regulations, it was prohibited from purchasing digital assets.

    Earlier this year, Binance was subjected to a flurry of regulatory restrictions, with a number of countries attempting to impose restrictions on the world’s largest exchange.

    Even some of the most crypto-friendly governments have distanced themselves from Binance. The Monetary Authority of Singapore accused the exchange of violating local payment rules earlier this week and added it to its “investor alert” list.

    Last month, the South African Revenue Service announced stricter tax rules for cryptocurrency users, who will now face up to a 45 percent tax on their gains. Those who attempt to avoid paying taxes may face jail time.

    What's your reaction?