Binance, one of the largest crypto exchanges in South Africa, has re-introduced crypto futures trading on its platform in a partnership with FiveWest OTC Desk.
From 2022-09-26 08:00 (UTC), USDⓈ-M and COIN-M perpetual and delivery Futures contracts will be available to South African users on Binance through a juristic representative arrangement with FiveWest OTC Desk (Pty) Ltd (FiveWest). – Binance
The announcement comes following the launch of a fiat gateway for the South African Rand (ZAR) as part of the company’s product offerings as it expands its local presence in the region.
According to reports, the product comes following lengthy compliance and regulatory processes, given that the exchange had suspended its derivatives products in October 2021 after South Africa’s Financial Sector Conduct Authority (FSCA) issued a warning.
In regards, the regulator had warned:
The FSCA would like to caution that in addition to this entity not being authorized to provide any financial services or business, crypto-related investments are currently not regulated by the FSCA or any other body in South Africa. – FSCA
The regulatory issues concerned futures, options, margin, and leveraged tokens which Binance will now continue offering under a partnership.
FiveWest, which is described as one of the country’s leading fintech service providers for trading pairs, is authorized as a Financial Services Provider under South Africa’s Financial Advisory and Intermediary Services.
We are pleased to be relaunching crypto futures in partnership with FiveWest as it delivers on our core focus on ensuring local industry compliance while enabling greater access to digital assets for South Africans. – Hannes Wessels, Director, Binance, South Africa
On his part, Binance CEO, Changpeng Zhao, indicated that South Africa is a very important market to the company and that Binance remains focused on building user trust through regulatory compliance, security, and strategic partnerships.