Binance in trouble: More states are getting serious!

South Africa issues warning against Binance

As of yesterday, Friday 03 September, the Financial Sector Conduct Authority (FSCA) of South Africa issued a press release titled “FSCA warns public against Binance Group”.

In this press release, FSCA speaks out against Binance’s actions in South Africa. It says that no requirements have been met in that country to be allowed to carry out financial advice or financial services.

The Financial Sector Conduct Authority (FSCA) warns the public to be cautious and vigilant when dealing with Binance Group as it is not authorised to carry out financial advisory or intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.

This time, however, Binance has come up with a strong counter. In a statement to Decrypt, the exchange points out that the FSCA does not regulate cryptocurrencies, nor crypto exchanges in South Africa.

In turn, Binance has been working with the Financial Intelligence Centre (FIN) to meet South Africa’s demands, it says. Thus, Binance does not face any legal consequences in South Africa, at least.

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Problems in Singapore

South Africa is far from the only country calling for Binance to be regulated. Just two days ago, on Thursday 02 September, a statement was also issued by Singapore towards Binance.

In this statement, the country’s central bank (MAS) informs that Binance may be in violation of the Payment Services Act. As a result, Binance has been placed on the MAS’s Invetor Alert list as the crypto exchange is not authorized to provide payment services in the country.

Binance is required to cease providing payment services […] to Singapore residents and to cease soliciting such business from Singapore residents.

Binance has responded directly to this incident. For example, Binance Asia Services (BAS), which is responsible for operating Binance.sg, i.e. the Binance platform in Singapore, has announced that an application for a license has already been received by the central bank.