Binance Resumes Offering Futures Trading Products to South African Users – Nearly a year after blocking South African users’ access to its futures trading platform, Binance has announced that perpetual and delivery futures contracts are now open to eligible South African users. The cryptocurrency exchange informed its users in a statement that the type of futures products offered has not changed from Binance’s previous futures offering in South Africa.
However, the cryptocurrency exchange stated that it had adjusted the manner in which such product offerings are made available to South African users. In October 2021, it was reported that Binance would restrict South African users’ access to its “futures, options, margin, and leveraged tokens”
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The abrupt decision was made by the cryptocurrency exchange immediately after the Financial Sector Conduct Authority (FSCA) advised the public against doing business with Binance. The authority disclosed at the time that the crypto exchange was not authorized to provide financial advice or intermediary services in South Africa.
However, in a message to users, Binance implied that it has resolved issues with the regulator and that its activities in South Africa are now legal: “From 2022-09-26, USDS-M and COIN-M perpetual and delivery Futures contracts will be available to South African users on Binance via a juristic representative arrangement with FiveWest OTC Desk (Pty) Ltd (FiveWest).”
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Fivewest is a licensed provider of financial services in accordance with the Financial Advisory and Intermediary Services Act of 2002; its FSP number is 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.”
