Absa’s private banking contact center initially suggested that the new measures, which are believed to have gone into effect on June 18, 2021, were implemented because Binance does not comply with regulations. Absa’s blockade of the overseas purchase of cryptocurrencies come just a few 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. Binance, which claims to be fully compliant with all current crypto regulations within the Africa region, has rejected the assertion that it is not. Instead, the crypto exchange suggests the blockade could be linked to the South Africa Reserve Bank’s foreign exchange rules.
SARB confirms that cryptocurrencies are not legal tender and that its Financial Surveillance Department is unable to approve any transactions of this nature. The central bank also adds that the repatriation of value to South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance. After previously saying its retail customers were free to partake in any cryptocurrency dealings with their credit or debit cards.