South African bank bans purchases on Binance

Absa Bank, one of Africa’s largest banks, is restricting customers from buying or selling digital currency on international exchanges. According to reports, the South Africa-based lender has made it impossible for its customers to trade on Binance.

At first, the bank cited non-compliance on Binance’s part as the reason for the restriction. But the crypto platform argued that the ban is a result of new regulations that affect all cryptocurrency trading firms.

Users who tried to trade on Binance using their Absa credit card received an error message saying “temporary lock enabled for online purchases on credit card.” Though the error message initially stated that the lock could be deactivated in the banking app, efforts to do so proved abortive.

UK’s TSB recently aired concerns about Binance and loopholes in its measures which allow the operation of fraudsters to go unchecked.

This is one of the reasons why many other regulators and governments across the world are putting up measures to manage and regulate the operation of crypto platforms.