South Africa is the most recent country to issue a warning to investors regarding the currency, with the rand weakening against other major global currencies. The regulator says that cryptocurrencies are not regulated by the South African Financial Services Agency (Safar) and therefore cannot be regulated by them.
According to the South Africa financial sector conduct authority, Binance Group, it is “not authorized to provide any financial advice or to provide intermediary services” (FSCA). In respect to the FSCA, this Company was discontinued.
It also added Binance stated that it does not control the exchange of cryptos or cryptocurrencies. It did not work with the FSCA but “constantly collaborated” with the Federation of Independent Commodities Administrators (FIC). That is why it has not been working with the commission.
The FSCA regulates the banking and insurance sector aims of ensuring fairness and protecting clients and preventing financial crimes like terrorism and money laundering. FinCEN is its closest American equivalent which tackles money laundering and terrorism financing among other financial crimes.
In addition, Binance was given nits in the FSCA statement, which referred to the Binance Group as “the Seychelles-based multinational corporation.” There is no “related company known as ‘Binance Group’ in Seychelles,” according to Binance. Binance preferred to be established as a public global business on the Cayman Islands and Seychelles, according to Decrypt’s February 2020 report.
Regulators in the country are not pleased with that. The United States Commodities Futures Trading Commission examined whether the exchange allowed US residents to use their services, which had not been registered in the United States. According to sources, the operations of Binance will also be examined by the Justice Department and Internal Revenue Service.
Although Binance was not charged with any wrongdoing, the consequences were felt. Users have expanded their KYC processes to check identification, according to an announcement made in August. Brian Brooks, the Chief Executive Officer of Binance US, is said to have been influenced by the discussions about how its affiliate should interact with US regulators.
In recent months, central banks and securities regulators have also been burning the bond. Binance.com was recently placed on the Investor Notify List by the Singaporean Monetary Authority to alert Singaporeans that the MAS does not control or endorse the international exchange. Included in the warning was the Binance.sg platform, which is particularly in Singapore. MAS had already advised Binance Asia Services, registered in Singapore, not to be licensed.
Over the last 24 hours, Binance has had a total of $30.2 billion in transaction volume. The nearest competitor, Coinbase, only managed 5.5 billion dollars over the same period. None of them have been able to break the stranglehold they have on the trading market.