Binance, the leading cryptocurrency exchange based on trading volume, has enhanced its compliance rules for users in South Africa to comply with the country’s regulatory requirements.
This decision was made following Binance's legal interactions with South African regulators over the past four years, resulting in adjustments to the services provided by the exchange.
Binance has implemented stricter regulations for its users in South Africa starting from April 30. Users are now required to furnish detailed information about both the sender and receiver of any cryptocurrency transactions conducted on the platform.
To ensure adherence to local regulations, Binance will gradually introduce modifications to the procedures for crypto deposits and withdrawals to align with South African regulations. Users in South Africa will need to supply sender information when receiving any crypto in their Binance accounts and beneficiary information when sending crypto out.
These details may include full names, country of residence, and details of the originating exchange. These changes will only affect crypto deposits and withdrawals on the platform, and failure to provide the required information could lead to delayed or failed transactions, resulting in the return of crypto assets to the sender.
This move comes amidst increased regulatory pressure from South African authorities seeking greater oversight within the cryptocurrency sector. Binance had previously discontinued various services in South Africa, such as futures, options, margin trading, and leveraged tokens, in line with regulatory requirements.
Additionally, there are discussions about Kenya imposing taxes on crypto exchanges in the future, contingent upon the adoption of new regulations to govern digital currency transactions in the country. Proposed regulations may require crypto exchanges operating in Kenya to pay a 1.5% tax on commissions received from the over four million digital currency users in the country. The goal of these measures is to provide clarity and oversight to the digital asset ecosystem in Kenya similar to the steps being taken by Binance in South Africa.