Starting April 30, Binance users in South Africa will face a new layer of verification when sending or receiving crypto. This isn’t just a random update; the exchange notes that the move is part of a broader regulatory shift across the country. And it could shape the future of how crypto moves in and out of South Africa.
Going forward, Binance users in South Africa will need to provide detailed information for every crypto transfer, including deposits or withdrawals. Binance will ask for the sender’s or receiver’s full name and country. Users will also need to indicate if the transfer is coming from another exchange.
While many label the move as an attack on anonymous transfers, it is important to note that these rules only apply to crypto transfers. So, trading or other platform features continue as usual. However, the rule only applies to moving assets in and out of the crypto exchange.
Why Binance Is Doing This
The move aligns with Binance’s bid to become more compliant with local laws. The crypto exchange has had its share of regulatory troubles, facing bans and fines in some countries.
Requesting user information for transactions also keeps up with South Africa’s tight crypto policies for exchanges and transactions. Furthermore, Binance’s move is a direct response to the Financial Sector Conduct Authority (FSCA) and the South African Revenue Service (SARS), both of which are increasing their oversight.
SARS recently made it mandatory for anyone involved in crypto, including exchanges and intermediaries, to register with the authority. Platforms that fail to comply are now deemed illegal. Meanwhile, the FSCA is cracking down on unlicensed operators that promise massive daily returns.
What It Means for Users
The new announcement calls for preparation for users, as Binance has warned about consequences for users who fail to provide information for transactions. Such users could see their transactions delayed or even returned. Plus, Binance urged South African users to re-login starting April 24 to prepare for the change.
The news comes shortly after Binance announced improved Know Your Customer measures for users in India. Following its return to the Asian country, Binance is prioritizing compliance. Now, both old and new Binance users in India must complete KYC measures to access their app.
Disclaimer
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