Binance imposes restrictions on South African users

The Bitcoin exchange Binance closed access for South Africa users to margin trading, leveraged tokens, and also cryptocurrency derivatives (futures and options). The company said the move was to comply with local law.

Users were barred from opening new accounts for these products. Clients were given 90 days to close positions — on 6 January 2022 they would be liquidated automatically.

In early September, the Financial Sector Conduct Authority of South Africa urged investors to exercise ‘prudence and vigilance’ when dealing with Binance. The regulator noted that the company is not authorised to provide financial advice and intermediary services in the country.

Earlier, cryptocurrency exchange Binance imposed restrictions for users from Singapore. In September MAS included the platform in Investors’ Alert List.

Over the past several months, financial regulators in a number of countries, including the United Kingdom, the Netherlands, Italy, Poland, Japan, Thailand, Hong Kong, and a number of others, issued warnings to investors about the exchange’s activities.

Against this backdrop, CEO Changpeng Zhao published an open letter, in which he set out the company’s plans to ensure regulatory compliance and protect clients.

In September, Binance’s CEO said the platform would abandon a ‘decentralized’ business model. He said such governance would hinder regulators’ approval in jurisdictions with stringent licensing regimes.

In a recent talk with Reuters, Zhao noted that the company would establish a number of global headquarters around the world, including in Ireland. In September Binance registered three ‘subsidiaries’ in the country.

As previously reported, the Bitcoin exchange hired former IRS Tigran Gambaryan as the company’s vice president of global intelligence and investigations.