One of the world’s biggest cryptocurrency exchanges by volumes traded, Binance, has said its futures products are now available to eligible South African users. Binance made it clear that they have resolved problems with the regulator in South Africa and that their activities are now legal.
Products Not Changed
Binance had blocked South African users’ access to their futures trading platform for almost a whole year. Now, Binance has announced that both perpetual and delivery futures contracts will be available to all eligible users. In a statement, the crypto exchange told its users that the type of futures products being offered has “not changed from Binance’s previous futures offering in South Africa.”
However, the cryptocurrency exchange claimed that it has changed how such products are offered to South African customers. As reported by Bitcoin.com News in October 2021, Binance said it would stop South African users from accessing its “futures, options, margin, and leveraged tokens products.”
The crypto exchange’s abrupt decision came shortly after a regulator, the Financial Sector Conduct Authority (FSCA) warned the public against having dealings with Binance. The regulator informed the public that the cryptocurrency exchange wasn’t authorized to provide any type of financial advice in South Africa.
Juristic Representative
Binance, however, sent a message to its users indicating that it had resolved issues with regulators and that South Africa’s activities are now in compliance.
South African customers will have access to futures contracts on Binance starting in 2022, 09-26 USDS -M and COIN -M perpetual and delivery Futures through a legal representative agreement with FiveWest OTC Desk Ltd (FiveWest).
Fivewest, a financial service provider licensed under the Financial Advisory and Intermediary Services Act 2002 is FSP 51619. To ensure that Binance complies with local laws, the crypto exchange’s statement said Brickhouse — a member of “the Binance group of companies” — will be offering “derivative products to users in South Africa in its capacity as a juristic representative of Five West.”
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