Binance South Africa
By volume, Binance is the largest cryptocurrency exchange in the world, and it has local affiliates in the US, UK, and Singapore. Each day, it handles $20 billion to $30 billion in transactions, which is about five times as much as its next-largest competitor.
To access its cryptocurrency exchange platform, South Africans can join the company's Telegram group.
The popular crypto exchange has a lot to offer its South African clients, but it does come with some limitations. Here, we talk about some of those weaknesses as well as the safety of trading on the platform.
Is Binance Available in South Africa? Is it Legit?
There’s no doubt that Binance is one of the most popular platforms for trading Bitcoin in South Africa. In addition to purchasing and selling Bitcoin, you can also trade other cryptocurrencies against the price of Bitcoin.
Binance has announced, however, that it is terminating some services in South Africa to comply with regulations. The FSCA (Financial Sector Conduct Authority, also known as the FSCA) warned Binance Group that it could not provide any financial advice or render intermediary services in South Africa.
Traders in South Africa will no longer have access to the popular cryptocurrency broker's futures, options, margin, and leveraged token products.
Are you wondering if Binance is legit? In a nutshell, yes, crypto exchanges like Binance are legal in South Africa.
According to the FSCA, Binance is not authorized to provide any financial services or business in South Africa, and crypto-related investments are currently unregulated.
Therefore, if something goes wrong, it could be difficult to get your money back. So, if you’re a South African crypto investor, it’s best to use Binance at your own risk.
Binance South Africa Limitations
As mentioned above, Binance has limited multiple service offerings in South Africa. The exchange will no longer provide futures, options, margin trading, and leveraged tokens. This means that South African users will be restricted from opening new accounts for these products.
Binance made the decision to limit some services for locals in South Africa due to a warning from the FSCA about consumers’ risks in engaging with the “Binance Group”. Also, the South African Revenue Service (SARS) imposed new taxes on digital assets like cryptocurrencies by up to 45%
Binance South Africa Pros and Cons
👍 Pros:
• Fast: Binance processes 1.4 million orders per second
• Extensive collection of crypto coins available for trading: Binance offers trading on more than 500 popular coins
• Low fees: Binance has some of the lowest cryptocurrency trading fees in South Africa.
• Liquidity: Since trading started on the platform, Binance has offered a high liquidity to its customers.
• Offers its own cryptocurrency wallet: The Trust Wallet app is available for iOS and Android devices, and can be used with Binance or any other Bitcoin exchanges in South Africa.
• Offers deposits and withdrawals of South African Rand (ZAR): Users can deposit and withdraw ZAR to and from their Binance wallets via Instant EFT.
👎 Disadvantages of Broker:
• Limits trading options: South African users can’t trade futures, options, margin trading, and leveraged tokens.
• Not regulated by any financial authority in South Africa: The South African financial authority FSCA says that Binance isn’t authorized “to give any financial advice or render any intermediary services”.
How to Buy Bitcoin in South Africa with South African Rand
Rand (ZAR) Minimum Deposit
Depending on the type of currency you're depositing, the minimum deposit on Binance will vary. A minimum amount for USD is $10, whereas a minimum amount for ZAR is 500 ZAR. When transferring cryptocurrencies into your Binance account, there is no minimum deposit.
A Step-by-Step Guide to Buy Bitcoin
Launch the Binance App. Select "P2P Trading".
Select BTC from the Buy tab. To filter your results, click on the filter icon in the top right corner of your screen.
In order to buy crypto, choose the bank payment method you’d like to use. Then, be sure to specify that you want to use the ZAR currency to purchase Bitcoin. Once you’ve done that, tap on the confirm button.
Simply choose the offer you want and enter the quantity you'd like to purchase. Select a payment method and click on "Buy BTC.".
Upon receiving the seller's payment information within the payment deadline, transfer the money directly to the seller. To communicate with the seller, use the chat box.
Next, tap on "Transfer" to send the money to the seller.
Click Confirm. Don’t click Confirm if you haven't made any transactions. By doing so, you will be violating the P2P User Transaction Policy.
Once you’ve confirmed, the status will change to “To be released.”
How to Withdraw ZAR to Card
How to Withdraw ZAR to Card
Contact the Binance Support Team to withdraw ZAR from your Binance account by submitting a 'Support Ticket'.
And select a specific request with “ZAR Withdrawal Request”.
To ensure Binance processes your request, provide the following information and documents:
Email address
First name and last name (as indicated in your identification document)
Binance ID
Primary residential address
ID number (passport number if foreign national)
Cell phone number
Name of your bank
Bank account number
Branch code
Account holder name (must be the same as the Binance user)
Withdrawal amount Rands (ZAR)
FAQs
How do I withdraw ZAR balances into my bank account?
Open a customer service ticket and provide the information and documents listed above. Prior to requesting a ZAR withdrawal, make sure you read the directions thoroughly. If you wish to withdraw funds to a bank account, make sure the bank account belongs to the verified account holder of the Binance account that’s requesting the withdrawal.
Is there a fee to deposit ZAR to Binance?
No. When you make a deposit with ZAR or another fiat currency, Binance doesn’t charge you a deposit fee.
Can I trade Bitcoin with Binance?
Yes. Binance is one of the most popular platforms for trading Bitcoin in South Africa. You can buy and sell Bitcoin and trade other cryptocurrencies against the price of Bitcoin.
Can you trade futures on Binance in South Africa?
No. Binance has taken another step towards refining its product offerings in different markets around the world, this time in South Africa. Futures, options, margins, and leveraged tokens are no longer available to clients in the country.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.