Binance plans to transfer its South African
derivatives operations to its Bahrain subsidiary. The crypto exchange mentioned in a statement today that this move will require users to adapt to new procedures and ensure compliance with South African and Bahraini regulations.
Regulatory Shift Prompts Account Migration
Binance Bahrain will now serve as the official entity
handling derivatives products for South African residents. According to the exchange,
this transition is important in maintaining the exchange’s operations within
the regulatory frameworks of both South Africa and Bahrain.
To continue trading derivatives, South African users
must create a new account with Binance Bahrain and go through a fresh
Know-your-Customer (KYC) process, which aligns with the standards set by the
Central Bank of Bahrain.
This shift means that existing South African users of
Binance’s derivatives services will have to accept new terms of use and
resubmit all required KYC documentation under Bahrain’s jurisdiction. While potentially cumbersome for users, this additional step is reportedly essential for Binance to remain compliant with international
standards and to continue offering its services legally in South Africa.
Binance Bahrain’s Regulatory Compliance
Binance Bahrain holds a Category 4 crypto-asset service provider license granted by the Central Bank of Bahrain. This license allows Binance to operate a crypto-asset exchange and offer custodian services. It also ensures that Binance can provide a full range of services to its users, including those in South Africa, under a stringent and comprehensive regulatory framework.
Recently, Binance reached 200 million users alongside
another notable milestone of holding $100 billion in
user assets under custody. The 200 million user mark represents a substantial
portion of the global cryptocurrency user base, with Binance users accounting
for approximately 36% of the total.
This growth has enabled the exchange to add 40 million
users in 2023 and a further 30 million in the first half of 2024. Binance marked this milestone across its social media
channels, terming the achievement as a step towards its goal of recruiting one
billion users, or one in every eight people globally.
Additionally, Binance reintroduced Mastercard payments for crypto purchases, a service the crypto exchange had paused due to legal
challenges facing Binance in the US. The SEC and CFTC filed multiple charges
against the exchange, leading to a temporary suspension of these services.
This article was written by Jared Kirui at www.financemagnates.com.
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