Binance reacted and responded to a notice published by the South African Financial Sector Conduct Authority (FSCA) on Sept 3, 2021, warning users to be vigilant when dealing with the cryptocurrency exchange.
The finance authority claims that the exchange isn’t authorized to give any financial advice or render any intermediary services.
South African regulatory body issues public warning
In a notice, published on Sept 3, 2021, the South African regulatory body known as the Financial Sector Conduct Authority, published a press release warning South African consumers about the risks of engaging the “Binance Group” via its Telegram group. It is through this group, according to the FSCA, that access is allegedly obtained to the cryptocurrency trading platform.
The notice alleges that no such entity is located in Seychelles, is not authorized to give financial or any intermediary service to the South African public under the Financial Advisory and Intermediary Services Act, 2002.
It also warned the public about the fact that cryptocurrency is not regulated in South Africa, and hence it’s unlikely that money will be returned should something go wrong. This notice comes amid other regulatory opposition that the exchange has faced with Singaporean, Italian, and Brazilian authorities who have issues similar warnings about regulatory compliance.
Binance fires back at South African FSCA
In response to this notice, the exchange responded in a Twitter thread by saying that it doesn’t provide any financial advice, render any intermediary services, or even have an entity called “Binance Group” in Seychelles. The response added that the exchange’s official, moderated Binance SA Telegram Group that promotes blockchain education, does not, nor is intended, to provide financial advice.
Binance also warns in the Twitter thread about scammers pretending to be representatives of the company and claims that “Binance Group” is a false and unassociated entity.