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South Africa Bank Blocks Customers From Buying Crypto on Binance, Exchange Dismisses Allegations – Finance Bitcoin News #cryptocurrency #bitcoin #crypto #blockchain

According to a media report, Absa, a South African bank, has reportedly blocked the use of its credit cards for users buying cryptocurrencies on international exchanges. The claim comes after customers of the financial institution were reported to have received a text message informing them about the suspension of online payments made to major crypto exchange, Binance.

Binance’s alleged non-compliance with South African regulations

According to a report by Mybroadband, Absa’s Private Banking Contact Center initially suggested that the new measures, which are believed to have come into force on June 18, 2021, be implemented because Binance “did not comply with the rules”. does.”

South Africa bank blocks customers from buying crypto on Binance, crypto exchange denies allegations

Reports of Absa’s blockade of foreign purchases of cryptocurrencies came just weeks after South Africa’s Intergovernmental Fintech Working Group (IFWG) published its new position paper on crypto assets. In this latest document, the IFWG recommended that South Africa should now consider regulating cryptocurrencies.

Meanwhile, Binance, which claims to be fully compliant with all existing cryptocurrency regulations in the Africa region, rejected the claim that it was not. Instead, the crypto exchange suggests that the blockade could be linked to the forex regulations of the Reserve Bank of South Africa. Per the report, Binance said:

Transactions of users/block of cards may be related to [the] South African Reserve Bank [SARB] regulation and foreign exchange regulation.

Repatriation of value through crypto prohibited

Indeed, on its webpage, SARB confirms that cryptocurrencies are not legal tender and that its financial watchdog department is “unable to approve any transactions of this nature.” The central bank also adds that “repatriation of value in South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance.”

Meanwhile, after previously saying that its retail customers were free to participate in any cryptocurrency transaction with their credit or debit cards, an Absa spokesperson now said that this is “not acceptable in South Africa.” Nevertheless, the spokesperson told MyBroadband that since its investigation is “an industry matter, and not ABS-specific, we suggest that you contact the SA Reserve Bank for a more comprehensive approach.”

At the time of publication, MyBroadband stated that it had not received a response from SARB on its investigation.

What are your thoughts on Absa’s decision to stop customers from buying crypto assets on Binance? Tell us what you think in the comment section below.

image credit: Shutterstock, Pixabay, WikiCommons

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