Binance Introduces Restrictions For Another Jurisdiction

Bitcoin exchange Binance has closed South African clients' access to margin trading, leveraged tokens, andalso cryptocurrency derivatives (futures and options). The company explained the move by its desire to comply with local laws.

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Users were barred from opening new accounts for these products. Clients were given 90 days to close positions - on January 6, 2021, they will be automatically liquidated.

At the beginning of September, the Office for Supervision ofSouth Africa's financial sector has called on investors to be "cautious and vigilant" when dealing with Binance. The department noted that the company is not authorized to provide financial advice and intermediary services in the country.

Previously, the cryptocurrency exchange introduced restrictions for users from Singapore. In September, MAS placed the platform on its “investor warning list.”

Over the past few months, financialregulators of several countries, including the UK, the Netherlands, Italy, Poland, Japan, Thailand, Hong Kong and several others, have issued warnings to investors regarding the exchange's activities.

Against this backdrop, the company's chief executive Changpeng Zhao published an open letter outlining its plans to ensure compliance and customer protection.

In September, Binance CEO said thatthe exchange will abandon the “decentralized” business model. This form of governance makes it difficult to gain regulatory approval in jurisdictions with strict licensing regimes, he said.

In a recent conversation with Reuters, Zhao noted that the company will establish a number of headquarters around the world, including in Ireland. In September, Binance registered three subsidiaries in the country.

To recap, the Bitcoin exchange hired former IRS special agent Tigran Gambaryan as the company's vice president of global intelligence and investigations.

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