Source: The Block
South African users may face stricter Know Your Customer (KYC) procedures when sending and receiving cryptocurrency.
New Regulations
Binance, the world's largest centralized cryptocurrency exchange, announced that new requirements regarding digital asset deposits and withdrawals for South African users will take effect on April 30 to comply with local regulations.
User New Requirements: The notice mentioned that users may need to provide additional information before sending cryptocurrency, including the recipient's full name and country of residence. The same applies when receiving cryptocurrency, as South African account holders may need to clarify whether the funds are coming from or being sent to a self-custody wallet.
Transaction Processing: Binance stated that transactions lacking this information may be delayed or unable to be processed, adding that from April 30, 'crypto assets may need to be returned to the sender.'
Background Information
Previously, South African regulators issued warnings to Binance regarding financial advice and intermediary services. After the Financial Sector Conduct Authority (FSCA) issued a warning about its operations in October 2021, Binance ceased local derivatives trading.
At that time, Binance did not have an operating license in South Africa, and the regulation of crypto assets in South Africa was essentially absent. Since 2021, the FSCA has gradually introduced a licensing system—Africa's first such system. The measure was initiated in 2021 and partially came into effect in 2022, allowing Binance to legally provide services to South African users in 2024.
South Africa's Crypto Economy
According to Chainalysis data, South Africa is one of the largest crypto economies in Africa, alongside other hubs like Nigeria and Kenya.