At a time when the price of “magical internet money” is down, banks in South Africa are thwarting customers from using their credit and debit cards for purchasing cryptocurrencies on Binance, amongst other international exchanges.
According to local tech news agency Mybroadband, this blockage comes after South African-based financial services group, Absa Group Limited, said in a statement that crypto transactions were blocked as per instructions of the South African Reserve Bank.
Just for reference, clients who were trying to buy cryptocurrencies from Binance received the following message:
Absa: Temporary lock enabled for online purchases on credit card ending with **0000. You can deactivate it via Absa Online, the Banking App or by calling the number at the back of your card for help. Auth FSP/NCRCP7
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While crypto traders in South Africa aren’t able to process digital payments through international exchanges at this point, Binance has submitted a response on the matter that “the block to users transactions/cards could be related to [the] South African Reserve Bank regulation and foreign exchange regulations”.
In this regard, the Reserve Bank’s website explains that “cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets is not allowed”, which, in the well-verses of an overall market’s perspective, may trigger concerns of a regulatory crackdown on South Africa’s crypto industry.
How will crypto markets respond to this? Give us your opinion in the comment section below.
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