FSCA: Binance Not Authorized to Offer Financial Services to Soutn Africans
October 11, 2021 | Uncategorized | No Comments
Cryptocurrency exchange firm Binance recently announced that there would be changes in their offers to their South African customers after being warned by FSCA. The changes include that they will be ending offers of options, margin, futures, and leveraged tokens products to their users in South Africa.
The Financial Sector Conduct Authority is Africa’s financial regulator and has warned the public that the company isn’t authorized to render intermediary services or provide financial advice. This is in terms of South Africa’s FAIS Act or the Financial Advisory and Intermediary Services Act, 2002. After receiving the notice, the cryptocurrency exchange company made it clear in a statement that they do not render any intermediary service nor provide any financial advice.
Even regulators from different countries including Netherlands, Singapore, Hong Kong, Italy, Canada, Thailand, Lithuania, U.K., and Malaysia are extensively inspecting Binance for possible insider trading and possible market manipulation.
Restriction of their South African users from creating new accounts will be effective immediately and that they have 90 days in which to close their account; or to lessen their position in the financial products. Binance added that they will no longer be allowed to open or expand new positions, but will be allowed to top-up margin balances in order to stop liquidations and margin calls from occurring.
It was also announced that by the end of January 6, 2022 at exactly 11:59 PM (UTC), users will be deprived of the ability to close or reduce their positions, once all remaining open positions are closed.