Binance is enforcing enhanced compliance protocols for South African users, which require sender and receiver information for all crypto deposits and withdrawals. 

The largest exchange in terms of daily trading volume stated that the action was taken in response to regional regulatory requirements.

Following the new compliance put in place for South African Binance users, set to take effect as of April 30, customers will be required to reveal the full name of the sender, their home country, and, if relevant, the name of the cryptocurrency exchange from which the deposit originated.

The same applies to the withdrawal process, requiring the beneficiary’s information before processing withdrawals.

Moreover, Binance cautioned that if the necessary information was not provided, transactions might be delayed or, in certain situations, the sender might receive their money back.

South Africa ramps up crypto oversight 

Notably, trading and other platform functions will remain unaffected by new compliance requirements; the update will only affect cryptocurrency deposits and withdrawals.

The upending of these requirements follows growing regulatory pressure from South African regulators, who pursue stronger oversight in the sector.

Meanwhile, this is not the first time Binance has complied with South African regulations. Four years ago, the leading exchange discontinued multiple service offerings in the country, including futures, options, margin trading, and leveraged tokens.

This decision was part of the regulator’s push for its citizenry to stick with derivative market transactions with a FAIS Act-compliant Registered Financial Services Provider.

South Africa positions as a digital assets hub amid increasing regulatory clarity

Ben Caselin, the chief marketing officer of Johannesburg-based cryptocurrency exchange VALR, revealed in September 2024 that emerging economies in Africa, especially South Africa, were positioning themselves as potential digital asset hubs amid increasing regulatory clarity.

Based on Caselin’s argument, South Africa is a crucial entry point for expanding cryptocurrency throughout the continent because of its robust legal system and business-friendly environment.

Statista estimated that the South African cryptocurrency market will bring in $278 million in 2025 and will rise at a compound annual growth rate of 7.86% to reach $332.9 million by 2028.

Although more than 260 applications were still being reviewed, the FSCA approved 59 crypto platform licenses in March 2024, demonstrating the growing regulatory momentum.

Binance did not respond to requests for comment from reporters.

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