‘No Recourse’: South African Financial Regulator Publishes Public Warning About Binance

South Africa’s financial regulator issues a warning to anyone thinking about investing with global crypto exchange Binance.

Investors should be “cautious and vigilant” about dealing with the crypto exchange because the company is “not authorized to give any financial advice or render any intermediary services” in South Africa, according to a press release by the nation’s Financial Sector Conduct Authority (FSCA).

“The FSCA would like [to] caution that in addition to this entity not being authorized to provide any financial services or business, crypto-related investments are currently not regulated by the FSCA or any other body in South Africa.

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

The regulators specifically mention an entity named “Binance Group,” which they claim is based in Seychelles. However, a Binance spokesperson tells The Block that Binance doesn’t have an entity named “Binance Group” based in Seychelles and that Binance.com doesn’t provide financial advice or render any intermediary services.

The spokesperson also said in a company Telegram group open to the South African public that Binance “promotes blockchain education and community announcements. It is not intended, nor does it provide any financial advice.”

 

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