Binance responds to allegations made by South African authorities

The exchange of bitcoin (BTC) and other cryptocurrencies, Binance, has been the subject of accusations by the authorities of several countries, either for not having its authorization to operate or for offering products such as futures trading, among others.

In that sense, Binance’s responses after the accusations are usually scarce or in some cases there are none at all, but surprisingly the exchange responded strongly to the accusations made by the Financial Sector Conduct Authority of South Africa (FSCA).

The body said that users should be “cautious and vigilant” when dealing with Binance Group, as they are “not authorized to give any advice”, as well as they cannot “provide financial services or business” with cryptocurrencies, according to the statement

that was published days ago.

They recalled that in South Africa, investments related to cryptoassets, are currently not regulated by the FSCA or any other body in South Africa.

They also noted that they received information that Binance Group was an international company located in the Seychelles and further that the exchange

has a group on Telegram that people can join to get access to its cryptocurrency exchange platform.

“If something goes wrong, you are unlikely to get your money back and you will have no recourse against anyone. Members of the public should always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services,” the body warned.

Binance gave a strong response

Binance’s response to the document of the South African body was not long in coming and the same day of its publication, from the Twitter account of Binance Africa several messages were launched

in

defense of the work of the company in that country

.

One of those tweets indicated that Binance.com “does not provide financial advice or brokerage services” in the African country and denied that they are located in the Seychelles, as claimed by the FSCA.

They confirmed having an “official community” on Binance SA Telegram that promotes blockchain, educational and community announcements but “is not intended to provide any financial advice,” they explained.

Binance responds to allegations made by South African authorities Binance responds to allegations made by South African authorities Binance reported that they do not give financial advice, they only promote the use of blockchains and educational announcements. Source: elements.envato.

Regarding the scams, Binance Africa denied that “Binance Group” belongs to Binance. “Please note that the

scammers pretend to be associated with http://Binance.com.”

They further warn that scammers “may impersonate Binance Customer Service team and communicate with you outside of our official channels.”

Finally, they stressed that the support staff will never ask users to disclose confidential information, or send money to any address for any reason.

Binance under the eye of regulators

The cryptocurrency exchange platform has had run-ins with various regulators in other parts of the world, such as in South Africa.

One such case is in the United Kingdom, where Binance was banned from offering certain regulated financial products under the orbit of the British regulator, as reported by CryptoNews.

In early July, this media outletreportedthat the exchange was also facing regulatory difficulties in several countries such as Singapore, Thailand, Cayman Islands, Japan and Malaysia. Then Italy, China and most recently Chile joined the list.