South African Regulator Issues Warning Against Binance Group

Kavya  |  Sep 4, 2021

In a press release issued on Friday, South Africa’s major financial regulator, the Financial Sector Conduct Authority (FSCA), advised the general public to take caution and issues a warning against Binance Group.

Binance Group Is Warned By A South African Regulator

It indicates that the Seychelles-based business is unauthorized, which implies that it is not permitted to perform any financial intermediary services in the nation.

The watchdog goes on to say that cryptocurrencies are still unregulated in South Africa and that investors risk losing their money if "anything goes wrong."

Before the warning, Absa, a South African bank, reportedly barred its clients from making funds to Binance through exchanges in early August. 

It stated that owing to local exchange control laws, it was banned from purchasing digital assets.

Earlier This Year, the Exchange Was Vulnerable To Plenty Of Regulatory Constraints

Earlier this year, Binance was subjected to a wave of regulatory limitations, with several nations attempting to impose limits on the world's largest exchange.

Even some of the most pro-crypto countries have distanced themselves from Binance. 

The Singapore Monetary Authority accused the exchange of breaching local payment laws earlier this week and placed it on its "investor alert" list.

Last month, the South African Revenue Service imposed tougher tax regulations for cryptocurrency users, who would now have to pay up to 45% tax on their earnings. 

Those who try to avoid paying taxes may risk prison time.

Binance Is Not Eligible To Provide Services In Italy

On July 15, the Italian Companies and Exchange Commission (CONSOB) issued a strong warning against Binance Group, claiming that its subsidiaries are not permitted to perform investment services or operations in the nation.

Binance.com, the website of the world's largest exchange, was specifically mentioned by the watchdog:

Consob warns savers that the "Binance Group" companies are not authorized to provide investment services and activities in Italy, even though the website www.binance.com, where sections titled "derivatives" and "Stock Token," which relate to instruments related to crypto-assets, were previously also written in Italian.

Italy has officially joined the worldwide crackdown on the cryptocurrency behemoth. 

In recent weeks, Canada, Japan, the United Kingdom, the Cayman Islands, Poland, Thailand, and, most lately, Malta have all increased their scrutiny on Binance.

The exchange is also facing a class-action lawsuit from a prominent Italian law firm that represents unhappy future traders, as previously reported.

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