Binance to Shift South African Derivatives Operations to Bahrain
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Binance, one of the world’s leading cryptocurrency exchanges, announced today that it will transfer its South African derivatives operations to its Bahrain subsidiary, Binance Bahrain B.S.C. (c).
This unexpected move by Binance aligns with the regulatory frameworks of South Africa and Bahrain, ensuring continued compliance and service provision in both countries.
South African users who wish to continue trading derivatives on Binance will now need to register new accounts with Binance Bahrain and complete a fresh Know-Your-Customer (KYC) process. This is the new standards set by the Central Bank of Bahrain.
The decision to migrate South African derivatives operations to Binance Bahrain is a response to the increasing need for regulatory alignment, given the growing scrutiny from financial authorities worldwide.
Binance Bahrain will now serve as the official entity managing derivatives products for South African residents, effectively becoming a Juristic Representative of FiveWest OTC Desk (Pty).
South African users of Binance’s derivatives platform will be required to set up new accounts with Binance Bahrain, accept new terms of use, and resubmit all necessary KYC documentation.
Although potentially cumbersome for users, this process is seen as essential for Binance to adhere to international standards and remain legally operational in South Africa.
The compliance process is part of Binance’s broader strategy to navigate the complex regulatory requirements imposed by the Central Bank of Bahrain, which has licensed Binance Bahrain as
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