Binance’s regulatory battles appear to have increased by one, as the Financial Sector Conduct Authority of South Africa joined the league of countries to declare that the exchange’s operation is unauthorized within its jurisdiction.
According to the press statement released by the regulator, the CZ-led exchange has no right to offer brokerage services or give investment recommendations in the African country.
Per this, the regulator issued a warning to investors to apply caution when dealing with Binance Group, as it is not eligible to offer financial advice or render any related services, as contained in the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).
FSCA continued that South Africans who continue to deal with the exchange might lose their funds. The agency wrote “if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone.”
Binance has faced lots of regulatory backlash concerning the location of its headquarters. While some have argued that its headquarters is in Malta, another group says it is in the Seychelles, while another school of thought believes it is in the Cayman Islands. However, the crypto firm CEO has denied this saying “it is not headquartered anywhere on the planet.”
Due to this, financial regulators in the UK, Japan, Italy, Malaysia, and South Africa have been forced to sound a note of warning to their citizens about dealing with the platform as it provides no legal protection for traders.