South African Regulator FSCA Issues Warning on Binance


The Financial Sector Conduct Authority (FSCA), a South African financial institutions regulator, on Friday (Sept. 3) warned the public to be “cautious and vigilant” when undertaking transactions with cryptocurrency exchange platform Binance.

Citing the fact that Binance is not authorized “to give any financial advice or render any intermediary services,” FSCA also noted in the press release that it does not regulate crypto investments.

“As a result, if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone,” the release added.

The FSCA encouraged the public to verify that an entity is registered with the FSCA before undertaking any financial services or receiving finance-related advice. To determine whether an organization is registered with FSCA, individuals can call toll-free 0800-110-443 or visit the website.

The FSCA is the latest regulator to take a stand against the cryptocurrency company. Earlier this week, the Monetary Authority of Singapore announced that Binance had been providing payment and business transaction services to Singapore residents without proper licensing, as PYMNTS reported. As a result of its failure to apply for a license, the Singapore regulator had placed on the investor alert list to denote that the company was not authorized to provide local payment services.

Read more: Singapore: Binance Lacks License to Offer Services

In July, Binance, which had previously come under fire for its compliance standards, was shut out of activity in Italy, according to PYMNTS.

See also: Binance Shut Out of Italy

The use of digital coins for crimes such as money laundering has led to increased scrutiny of crypto companies. Last month, one of Binance’s users was the victim of a hack worth $2.6 million. The funds have since been returned.

Learn more: UK High Court Tells Binance to ID Crypto Hackers