New product expands Binance derivatives offering, while allowing exposure to traditional assets without ownership.
Crypto exchange Binance has introduced TradFi perpetual contracts in South Africa and updated its know-your-customer (KYC) process for users of its futures platform.
According to a statement, the new product allows local traders to take positions on traditional assets, such as gold and silver, using USDT-settled contracts.
USDT is a stablecoin crypto-currency pegged 1:1 to the US dollar.
TradFi perpetual contracts enable the tracking of traditional financial assets (gold, silver) without requiring direct ownership. They have no expiration date and are often regulated.
On the crypto exchange’s platform, TradFi perpetual contracts are offered alongside Binance’s existing derivatives products, including USD-margined and coin-margined futures, as well as options, it says.
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According to the company, the updated KYC process will make it quicker for users to access its derivatives platform.
Binance Futures is a high-liquidity derivative platform that allows traders to buy and sell crypto-currency futures contracts.
The introduction of new features comes as Binance has faced ongoing regulatory scrutiny in multiple jurisdictions, with authorities raising concerns around compliance controls, anti-money-laundering processes and the offering of derivatives products to retail investors.
The company has previously been investigated or restricted by regulators in the US and parts of Europe.
Following a $4.3 billion settlement with US authorities in late 2023 for anti-money-laundering and sanctions violations, the exchange has been subject to increased compliance requirements and continuous monitoring.
Hannes Wessels, director of Binance South Africa, comments: “Our enhanced KYC process is a critical step in making futures trading more accessible and efficient for South African users.
“We remain dedicated to working closely with local regulators and partners like FiveWest to ensure our products meet local compliance standards, while offering world-class trading experiences. The recent introduction of TradFi Perpetual Contracts further expands the opportunities for South African traders to access traditional assets with the convenience and innovation of crypto derivatives.”
According to Binance, in SA, the company’s derivatives products are provided through a local regulatory structure. Nest Exchange and its affiliates, licensed in the Abu Dhabi Global Market, offer these products as juristic representatives of FiveWest OTC Desk, an authorised financial services provider.
Binance relaunched its futures products in SA in 2023 and has since expanded its local payments integration through partnerships, including with Stitch.
