As part of its approach to boost its local presence in South Africa, Binance has announced the introduction of a fiat gateway for the South African Rand (ZAR).
The global crypto exchange platform stated on its website, “Binance is pleased to offer deposits and withdrawals of South African Rand (ZAR) as part of Binance’s mission to increase the adoption and mainstream accessibility of crypto. Users will be able to deposit and withdraw ZAR to and from their Binance wallets via Instant EFT.”
A fiat gateway is referred to as an on-ramp, and this is a method that enables users to use fiat currencies to purchase cryptocurrencies. With the ZAR gateway, Binance will support direct crypto exchanges with the ZAR, removing the need for users to convert into other supported currencies like $USDT first.
This comes after the South Africa Reserve Bank (SARB) advised local financial institutions to work with crypto exchange platforms.
In a guidance note issued by the South African Reserve Bank’s Prudential Authority, banks are advised to act as a conduit for funds linked to crypto activity and to also play a role in customers wishing to purchase crypto assets or receive pay-outs for the sale of crypto assets via fiat currency into their bank accounts.
According to Binance, this service will be rolled out in two phases. Phase 1 will include deposits and trade.
“With immediate effect, Binance users are now able to deposit ZAR into their Binance wallets, and purchase BTC, BUSD, ETH, USDT, and BNB with their ZAR balance.”
Phase 2 includes withdrawals.
“From 2022-08-25 08:00 (UTC) onward, ZAR fiat withdrawals will be enabled for all Binance users.”
The new product should allow South African consumers to quickly and securely make deposits using Instant EFT as part of Binance’s continued efforts to promote the adoption and general accessibility of cryptocurrencies.
The company’s goal has always been to increase financial accessibility and hasten the adoption of cryptocurrencies, according to Hannes Wessels, Country Lead for Binance in South Africa.
The exchange not only has a large user base, but it has also broadened the services it offers, which at the moment include trading, infrastructure upgrades, educational resources, incubation, investment, and charity.
With the introduction of the Rand fiat gateway, Binance will become more competitive in the South African market, where a number of regional rivals currently enjoy a greater market share.