Highlights:
- Binance has transferred its South African derivatives arm to its Bahrain subsidiary.
- The trading platform cited regulatory concerns and the need to sustain its services for South African users as the reason behind the decision.
- Affected users must complete new registration, which entails Know-Your-Customer procedures.
The world’s largest exchange, Binance, has revealed plans to transfer its South African derivatives arm to its Bahrain branch, “Binance Bahrain B.S.C. (c).” The exchange’s latest decision stems from its commitment to ensuring regulatory compliance and providing trading services for its teeming users. On its part, the shift implies that Binance Bahrain is gradually becoming a Juristic Representative of FiveWest OTC Desk (Pty).
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Breaking the news on its official website, Binance stated:
“In line with regulatory requirements, Binance Bahrain B.S.C. (c) will become the entity that provides services for derivatives products for South African residents as a Juristic Representatives of FiveWest OTC Desk (Pty).”
For context, Bahrain is popularly referred to as the Kingdom of Bahrain. It is an Asian island nation on the southwestern coast of the Persian Gulf. Binance’s decision to utilize the branch in the Asian nation underscores sound regulatory standings in the country.
#Binance Bahrain B.S.C. has been appointed the new provider of derivatives products to South African residents, aligning with necessary regulatory frameworks. pic.twitter.com/DJhNYhMyKU
— cryptothedoggy (@cryptothedoggy) September 3, 2024
Affected South African Users must Register with Binance’s Bahrain Subsidiary
While the imminent transfer will undoubtedly have implications for South African users, Binance announced that there are plans for affected customers. Per the exchange, South African customers who wish to continue accessing its services must register with its Bahrain subsidiary. Interestingly, the registration entails completing fresh Know-Your-Customer (KYC) procedures.
While the above processes might seem bureaucratic for affected South African users, it remains crucial for them to access Binance trading options from their country. Notedly, Binance Bahrain is a Category 4 crypto asset service provider, boasting the Central Bank of Bahrain’s license.
The operational permit allows the Binance subsidiary to carry out transactions ranging from exchanges to comprehensive custodian services. It provides all these services under a compliant and safe trading atmosphere that guarantees funds security. Therefore, the registration procedures are guiding principles stipulated by the Central Bank, and intending users must abide by the rules.
Binance Regulatory Woes Continue to Worsen Despite Compliance Efforts
Considering its position and influence in the global trading landscape, one would expect that Binance would be one of the most compliant trading outlets. However, the reverse seems to be the case. Binance has emerged as one of the exchanges that has faced the most scrutiny.
Aside from the undisclosed regulatory compliance issue that resulted in Binance’s decision to transfer its derivatives arm to Bahrain, the relationship with the Nigerian government is also strained. Since February, Tigran Gambaryan, a Binance executive, has been in detention in the West African nation. The Nigerian authorities have sued the trading platform on the count of several financial crimes, ranging from tax evasion to money laundering.
Following the Nigerian government’s accusations, Binance sent two executives to represent it in Nigeria to clarify its stance. During the saga, one of the representatives, Nadeem Anjarwalla, plotted a successful escape plan that saw him flee the West African country.
Sadly, the second executive detention does not appear to end anytime soon despite his deteriorating health status. The employee’s unfortunate situation has attracted considerable attention from industry experts, clamoring for his release. In a recent tweet, Binance Chief Executive Office, Richard Teng joined to call for Gambaryan’s release. In the post, he stated, “This inhumane treatment of Tigran must end. He must be allowed to go home for medical treatment and to be with his family.”
This inhumane treatment of Tigran must end. He must be allowed to go home for medical treatment and to be with his family. https://t.co/HsQNoyE0cS
— Richard Teng (@_RichardTeng) September 3, 2024
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