Binance Cuts Derivatives in South Africa
After Australia, Binance has axed its derivatives products in South Africa.
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Binance will no longer offer futures, options, margin, or leveraged tokens to users in South Africa.
Binance Makes Another Compliance Play
Binance is winding down derivatives in South Africa.
In a Friday announcement, the exchange confirmed that South African customers will no longer be able to access its crypto derivatives trading products “to comply with local regulations.”
The restricted products include margin trading, leveraged tokens, futures, options contracts based on various cryptocurrencies like Bitcoin and Ethereum.
The exchange has given South African customers only 90 days to close their trading positions. After Jan. 6, 2022, all remaining open positions in derivatives accounts will be automatically closed.
The announcement follows a September warning from South Africa’s Financial Sector Conduct Authority (FSCA) against Binance Group. At the time, the regulatory statement clarified that Binance was not authorized to provide services in the country.
It is worth noting that the restriction only applies to derivatives; South African users will still be able to access other services such as spot trading.
This is not the first time Binance has restricted its offerings in a specific country. Last month, the exchange also axed derivatives in Australia. It’s also halted most of its offerings in Singapore and Malaysia.
Meanwhile, the exchange has been making efforts to strengthen its global compliance requirements. Steps taken to comply with regulators include reducing leverage trading limits to 20x, evaluating all of its product offerings, introducing KYC verification for all users, and dropping its decentralized headquarters.
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