Binance Responds to the South African FSCA, Refutes the Regulator’s Claims

By Godfrey Benjamin
September 5, 2021 Updated September 5, 2021
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Binance, the world’s largest cryptocurrency exchange by trading volume, has responded to the warning issued by the South African Financial Sector Conduct Authority (FSCA) to the general public regarding its legal status in the country. As highlighted in a previous report by Coingape, the FSCA joined the long list of regulators to issue a warning against the Binance crypto exchange, alleging that the trading platform is not authorized to give any financial advice or render any other intermediary services.

The FSCA claimed that the exchange was operating under the Binance Group as an international company situated in Seychelles. The financial watchdog noted that the trading platform runs a telegram group through which “members of the South African public can join to gain access to their cryptocurrency exchange platform.”

Binance has come to set the records straight that it does not operate any subsidiary with the name Binance Group that operates from Seychelles. The exchange urged the public to be mindful of scammers with the tendency to impersonate the exchange. Binance also highlighted that though it operates a Telegram group for its South African customers, that the group is not to offer Finance Advice as alleged, rather, it is to promote blockchain education and community announcements.

“We are aware of the notice published by the South Africa FSCA on September 3 and we can confirm that does not provide financial advice or render any intermediary services.  Also, we do not have an entity called “Binance Group” in Seychelles,” the exchange said in the tweet, adding “Binance Group’ is not a entity, please be mindful of scammers pretending to be associated with”

Turning the Odds in its Favor

There is a lot of FUD surrounding the Binance trading platform with respect to concerns shared by regulatory bodies around the world. Prior to this time, the exchange has been flagged by authorities in Singapore, Malaysia, Hong Kong, and Germany amongst others. The exchange has noted its willingness to work with all regional regulators to address the concerns they all have about the exchange’s operations.

The response to the South African FSCA is one of such steps to turn the odds in its favor. Per an earlier Coingape report, the United Kingdom’s Financial Conduct Authority (FCA) which earlier proscribed the exchange’s activities came out to announce that its regulatory requirements have been met. While Binance is still awaiting clearance to resume its operations in the UK, it hopes to pursue similar tracks with other regulators around the world. 

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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