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Binance pushes back against warning from South Africa regulator

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Binance pushes back against warning from South Africa regulator. Despite the fact that FSCA is an agency that falls under the South African government, Binance asserts that the South African Financial Intelligence Centre is the “major regulator” with which Binance had been cooperating in terms of applying the local laws.

Responding to the FSCA’s warning against Binance, the major crypto exchange confirmed its compliance with local regulators. Moreover, Binance emphasized that it is not providing any financial advice nor intermediary services to local residents.

Binance declared on Friday that FSCA’s aforementioned warning lacked power. Because the agency does not have the authority to regulate “crypto-related investments” in South Africa.

Additionally, Binance countered claims that its South African Telegram group provided financial advice or services to South Africans. It said the online community promoted blockchain education rather than providing financial services.

In response to the FSCA’s warning of Sept. 3, Binance has contacted the agency for clarification and to address any concerns regulators may have about the exchange.

Voluntary self-disclosure institution

“Binance.com is a voluntary self-disclosure institution registered with the FIC,” the exchange clarified. “Binance adheres to the FIC Act obligations in terms of establishing and verifying clients’ identities, maintaining records. As well, reporting unwonted or suspicious transactions”, Binance elaborated.

In its warning, the FSCA cautioned South Africans against investing in Binance Group. Which it characterized as an “international company” quartered in Seychelles. Nevertheless, Binance responded to this allegation asserting that it has no entity under that name in this country.

After being likely discreet in regards to crypto policies, the South African local regulators declared that they are reassessing their position in terms of digital assets. In like manner, South Africa’s Intergovernmental Fintech Working Group announced in July that it would lay the groundwork for a “phased and structured” approach to regulating cryptocurrencies. Notwithstanding, in some cases, the FSCA has used cryptocurrency scams for the purpose of advocating more stringent regulations.

Suspicions swirl around Binance in different countries

FSCA’s warning comes in line with financial regulators in different countries have reported that Binance or its affiliates are not permitted to provide certain financial services to their residents. Authorities in Italy, Malaysia, Poland, Germany, the UK, the Cayman Islands, Thailand. In addition to Canada, Japan, and Singapore warned investors to remain cautious when dealing with Binance, or alleged the exchange was operating illegally.

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