Binance pushes back against warning from South Africa regulator

[RSRS]

In response to a warning from South Africa’s Financial Sector Conduct Authority, major cryptocurrency exchange Binance has said it is in compliance with local regulators and is not offering financial advice or intermediary services to residents.

In a Friday statement from Binance, the crypto exchange implied the warning from the Financial Sector Conduct Authority, or FSCA, lacked authority because the group does not have the power to regulate “crypto-related investments” in South Africa. The exchange also pushed back against allegations that South Africans used the Binance South Africa Telegram group to access services for the crypto exchange, saying the online community promoted blockchain education, but did not provide financial advice or services.

Though the FSCA is an agency of the South African government, Binance claimed the country’s Financial Intelligence Centre was the “major regulator” with which it had been working to be in compliance with local laws. According to the exchange, it has contacted the FSCA for clarification as to its Sept. 3 warning and to address any potential concerns regulators may have regarding Binance.

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[Dark Knight]

However, according to Binance’s response, the company has no associated entity under that name in the archipelago nation. South Africa’s policy on crypto has been seemingly standoffish until recently, when local regulators announced they would be reevaluating their stance on digital assets. The country’s Intergovernmental Fintech Working Group said in July it would be laying the groundwork for the “phased and structured” regulation of cryptocurrencies in South Africa.
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