South African authorities are the latest to advise residents against using Binance, claiming the exchange is not licensed to operate in the country.
The Financial Sector Conduct Authority (FSCA) of South Africa has warned the public against dealing with cryptocurrency exchange platform Binance. The FSCA stated on Friday that Binance Group, a Seychelles-based “international corporation,” was not authorized to provide financial services in the country. Binance’s headquarters are located in the Cayman and Seychelles.
The FSCA warned that South Africans were gaining access to Binance’s crypto exchange services in the country via a Telegram channel.
In addition to cautioning South Africans from using Binance, the financial authority warned them that cryptocurrency investments are unregulated in the country. As a result, if something goes wrong, you are unlikely to receive a refund and will have no recourse against anyone, according to the FSCA statement.
Additionally, the FSCA urged the South African people to verify the registration status of enterprises in the financial and investment sectors before transacting with such firms. Binance did not immediately react to a request for comment on the incident from Cointelegraph.
The FSCA statement is the latest in a series of warnings and outright bans issued by financial regulatory agencies in a number of nations against Binance. On Thursday, Singapore’s Monetary Authority ordered Binance to cease supplying services in the country due to a possible violation of payment legislation.
The Dutch Central Bank accused Binance of operating illegally in August. Regulators in countries like Italy, Japan, Thailand, the United States, and the United Kingdom, to name a few, have increased their scrutiny of the crypto exchange behemoth.
Binance, for its part, has emphasized its desire to work with regulators and has even implemented a strict identity verification system for all users.
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