Reported by The Block: South African users may be subject to more thorough Know-Your-Customer practices when sending and receiving crypto.
Binance plans to implement the changes from April 30.
Binance, crypto’s largest centralized exchange, announced new requirements tied to digital asset deposits and withdrawals for South African customers in compliance with local regulations.
A notice shared Wednesday said users may need to provide additional details before sending cryptocurrencies, including the recipient's full name and country of residence. The same applies to receiving crypto — and South African account holders may need to specify if the funds originated from or are bound for a self-custodial wallet.
Binance said that transactions without this information could be delayed or unprocessed, adding that “the crypto assets may be required to return to the originator” starting April 30.
Previously, South African regulators issued warnings to Binance regarding financial advice and intermediary services. The CEX also closed local derivatives trading weeks after the Financial Sector Conduct Authority flagged its operations in October 2021.
At the time, Binance was unauthorized to do business in the African nation, and crypto assets were largely unregulated in South Africa. The FSCA has since introduced a licensing regime — the first of its kind on the continent. The move, which began in 2021 and partially took effect in 2022, enabled Binance to legally service South African users in 2024.
South Africa is one of Africa’s largest crypto economies, alongside other hubs like Nigeria and Kenya, according to Chainalysis.
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