Binance has blocked South Africans on its platform from using its margin, options, futures, and leveraged tokens trading services.
It is ranked as the biggest cryptocurrency exchange in the world by trading volume.
“Binance constantly evaluates its product and service offerings to comply with local regulations,” the company said in a statement.
“With immediate effect, South African users will be restricted from opening new accounts for these products.”
Binance said that users would have 90 days to reduce and close their positions for these products.
Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions.
“Users will no longer be able to manually reduce or close their positions after 6th January 2022 11:59 PM (UTC),” Binance stated.
“Thereafter all remaining open positions will be closed.”
Binance said it welcomes developments to its industry’s regulatory framework.
“They pose opportunities for the market players to have greater collaboration with the regulators,” Binance said.
“Our aim is to create a sustainable ecosystem around blockchain technology and digital assets.”
Binance’s banning of South Africans from its future and options markets comes after the Financial Sector Conduct Authority (FSCA) issued a warning against a Telegram group bearing Binance’s name.
“The FSCA received information that Binance Group, an international company situated in the Seychelles, has a Telegram group that members of the South African public can join to gain access to their cryptocurrency exchange platform,” the FSCA said.
It should be noted that Binance users can trade cryptocurrency with the platform through its website. It also offers PC and smartphones apps.
“The FSCA would like caution that in addition to this entity not being authorised to provide any financial services or business, crypto-related investments are currently not regulated by the FSCA or any other body in South Africa,” the regulator stated.
“As a result, if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone.”
The South African Reserve Bank (Sarb) also recently made it more difficult for South Africans to use Binance by blocking credit and debit cards purchases of cryptocurrency from offshore exchanges.
Sarb’s financial surveillance department also issued a warning earlier this year that it is a criminal offence to transfer cryptocurrency from South Africa to offshore exchanges and wallets.