Binance has announced that it is shutting down some services in South Africa to comply with the rules. The move follows a warning issued by South Africa’s financial regulator that the Beyonc গ্রুপ Group is not authorized to offer any financial advice or provide any intermediary services in the country.
Binance shuts down some services in South Africa
Cryptocurrency exchange Binance announced some changes to its offers in South Africa on Friday. Noting that it “constantly evaluates its product and service offers to comply with local regulations,” Binance said it would stop “offering” future, alternative, margin and leveraged token products to South African users. The company added:
With immediate effect, South African users will be barred from opening new accounts for these products. Users will have 90 days to reduce and close their position for these products.
The exchange continued, “Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to raise or open new locations.” In addition, “Users will not be able to manually reduce or close their position after 6 January 2022 11:59 PM (UTC). Then all other open positions will be closed. ”
The announcement follows a warning from the Financial Sector Conduct Authority (FSCA), South Africa’s financial regulator, in early September.
The FSCA warned the public that under the South African Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), the Binance Group is not authorized to offer any financial advice or provide intermediary services. Following the FSCA’s notice, Binance issued a statement claiming that “Binance.com does not provide financial advice or provide any intermediary services.”
Many global law enforcement regulators are scrutinizing Benson, including the United Kingdom, the Netherlands, Singapore, Hong Kong, Malaysia, Thailand, Lithuania, Italy, and Canada. U.S. authorities are also investigating Binance for potential market manipulation and insider trading.
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