South African regulator warns investors against working with Binance. The Financial Sector Conduct Authority of South Africa (FSCA) issued a press release in which they urged local investors to be careful and vigilant when working with Binance, the world’s largest cryptocurrency exchange by daily trading volume. According to the notice, the company does not have the right to provide financial advice or intermediary services in accordance with local legislation.
Members of the public should check the registration with the FSCA
“FSCA warns that besides the fact that Binance is not authorised to provide any financial services or business. Crypto-related investments are not regulated yet by the FSCA or any other body in South Africa. As a result, if something goes wrong, you’re unlikely to get your money back. And will have no recourse against anyone,” the agency said. In addition, they noted that the public used the Telegram group to gain access to financial services in the country. The supervisory called on depositors to check the registration of a legal entity or individual with the regulator of financial institutions. In order to provide consulting or financial services.
Binance faces a number of warnings
This statement is only part of a series of warnings and direct prohibitions against Binance by financial regulators. The company is currently facing an increasing number of warnings from around the world.
Back in August, the central bank of the Netherlands said that the cryptocurrency exchange was operating illegally. In Italy, Japan, Thailand, the USA, and the UK, Binance’s activities have already been verified and controlled by regulatory authorities.
Binance faces this, among other things. Due to the fact that it does not take the necessary measures to prevent illegal money laundering practices.
In contrast to the pressure from the regulatory authorities, Binance decided to strengthen its team with specialized employees. For its part, the company cooperates with regulatory authorities and even recently introduced mandatory Know Your Customer (KYC) verification for all users.