Recently, Binance made an announcement that shocked the crypto world. It claimed that it would be terminating a massive chunk of the services that it provided in South Africa effective immediately. As you would expect, it caused a great deal of confusion in the South African crypto community. For those who don’t know, there are plenty of crypto traders all over the world and the ones in South Africa have been increasing rapidly.
Once the announcement was made by Binance, a large number of crypto enthusiasts and experts wondered the reason behind this sudden change. Some people even feared that Binance was planning to shut down its operations entirely. However, that does not seem to be the case so far. As a matter of fact, if you look at the situation closely, you will soon realize that Binance merely removed some of its services because of compliance-related issues.
A regulator that was operating in South Africa warned Binance that it was in violation of some of the country’s crypto guidelines. Once this warning was giving, Binance quickly decided to terminate a massive chunk of its services to steer clear of any other regulatory issues. Contrary to popular belief, this move was not made to show the regulators in South Africa who’s boss. As a matter of fact, Binance made this move to make sure that it could still operate in South Africa without violating any type of regulation.
According to the regulator that issued the warning, the Binance group did not have any authority to offer any sort of intermediary service or financial advice in South Africa. Of course, the regulator did not take very kindly of this and gave an immediate warning to Binance. The world of crypto has been loads and loads of news recently, but this one is arguably the most attention worthy. One of the reasons behind it is that countries are taking regulations quite seriously.
Initially, when the idea of regulating crypto was introduced, people thought that it was just an empty threat and the crypto scene would remain unharmed. Now, however, it has been proven time and time again that governments are going above and beyond to make sure that regulation is in full effect. If this warning made by the African regulator means anything, crypto enthusiasts can expect even tighter regulations down the line.
For those who don’t know, Binance is a highly reputable crypto exchange. There are a large number of crypto analysts and experts who thought that Binance was virtually untouchable. Now, however, things are changing, and it has been proving that no matter how big an exchange is, it is not untouchable.