Binance tightens compliance over crypto transfers in South Africa to fulfill the local regulatory requirements. The crypto exchange made it mandatory for users to submit both the sender’s and receiver’s information while performing a withdrawal or deposit. The platform disclosed the announcement via its official site, and these changes will become effective from April 30.
While moving crypto funds from Binance to another exchange or self-hosted wallet, a pop-up message will appear demanding the receiver’s additional information after a sender confirms the withdrawal details. It includes the recipient’s full name, living country, and exchange name when possible.
In case a Binance user needs to transfer crypto funds to himself on another exchange, he’ll then need to only mention the crypto exchange name.
Similarly, in order to receive crypto, the recipient will have to first go to the ‘crypto credit page.’ And then click pending credits to provide the originator’s additional details.
This update only affects withdrawals and deposits while trading, and the platform’s other features remain ineffective for users in South Africa. As part of the process to roll out the new prompt, users would need to re-login to their Binance account as of April 24.
What happens if a user misses information while moving funds on Binance?
If a Binance user fails to provide the mandatory information, it would result in a delayed process or an unfinalized transaction, the announcement reads. The crypto exchange also warned that the funds might return to the originator in some cases.
Africa has been growing steadily as a hub for digital assets, with countries like South Africa and Nigeria leading the way in user interactions and regulatory frameworks.
In this slew, the South Africa’s Revenue Service (SARS) is obligating individuals, exchanges, and institutions involved in crypto to register with the watchdog. As reported by Bloomberg on April 2, crypto entities that do not register with the authority will be considered illegal.
Considering the growing crypto adoption in the country, South African authorities have also turned on their toes to establish a transparent crypto ecosystem.
In March, the country’s Financial Sector Conduct Authority (FSCA) issued a public notice to warn about the two unregistered crypto firms. The agency alleged both the platforms, Afriinvest and Mutualwealth, solicited users funds by offering a fake return on investment (ROI) of around $542 daily.
