South Africa’s Financial Regulator Issues A Warning Against “Unauthorised Entity” Binance
The Financial Sector Conduct Authority (FSCA) of South Africa warned the public against the Binance Group on Friday.
In the press release, the regulator issued a warning where it asked the public to be cautious and vigilant when dealing with the company as it is “not authorized” to give any financial services, advice, or business in accordance with FAIS Act in South Africa.
Additionally, the agency said that crypto-related investments are currently not regulated by the FSCA or any other body in South Africa. So, if anything goes wrong, the public will have no recourse against anyone, it added.
The Seychelles-based international company has been communicating with the people of South Africa through a telegram group, said the regulator.
For the past few months, Binance has been getting an onslaught of regulatory scrutiny, and as a result, the exchange has started working with the regulators and introduced KYC and AML measures to comply with the rules.
On Thursday, Singapore central bank also put it on the investor alert list and said Binance could be in breach of local laws and should stop providing payment services to its residents. The Monetary Authority of Singapore (MAS) said in a statement,
“MAS has reviewed Binance.com’s operations and is of the view that Binance, the operator of Binance.com, may be in breach of the Payment Services Act3”
“Binance is required to cease providing payment services … to Singapore residents and cease soliciting such business from Singapore residents.”
Binance’s Singapore entity has submitted a license application to the central bank, and currently, it is exempted from holding a license to operate as a digital payment token service provider.