The Financial Sector Conduct Authority (FSCA) has urged the public to be cautious and vigilant when dealing with Binance Group, saying the company is not authorised to give any financial advice or render any intermediary services.
The FSCA said the company is not compliant in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.
In a statement, the FSCA said it received information that Binance, an international company situated in the Seychelles, has a telegram group that members of the South African public can join to gain access to their cryptocurrency exchange platform.
“The FSCA would like to caution that in addition to this entity not being authorised to provide any financial services or business, crypto-related investments are currently not regulated by the FSCA or any other body in South Africa.
“As a result, if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone,” said the authority.
The FSCA said members of the public should always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services, and what category of advice it is that the entity is registered to provide.
“There are instances where persons are registered to provide basic advisory services for a low-risk product and then offer services of a far more complex and risky nature.”
The FSCA urged consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll free number (0800 110 443) or on the website www.fsca.co.za as to whether or not such institution or person is authorised to render financial services, and in particular, which financial products they are licensed for.