Crypto exchange Crypto.com has announced the release of a rand wallet. Non-rand fiat wallets, on the other hand, would be disabled for South African clients.
“We have partnered with a local bank to offer certain products and services that are compliant with local legislation, applicable law, and client demand,” a spokesperson explained.
Crypto.com is well-known for purchasing the naming rights to the Staples Center stadium (now the Crypto.com Arena), which houses the Los Angeles Lakers basketball team.
In addition, it spent a lot of money on “Fortune Favors the Brave” advertising with celebrities like Matt Damon and LeBron James.
On Friday, the exchange notified its South African customers of the impending changes.
“We are glad to announce that we have made headway in our service expansion in South Africa,” said Crypto.com.
“Please be advised that On 10 July 2022, Foris DAX SA (Pty) Ltd will become the contracting entity of the Crypto. com App.”
Customers in South Africa must accept the exchange’s upgraded terms and conditions with Foris DAX, which will manage their accounts, in order to continue using it.
Following acceptance of the updated terms, Crypto.com stated that the following modifications would take effect:
- Non-rand fiat wallets will be rendered inoperable.
- After July 10, 2022, any remaining non-rand fiat balances will be converted to USDC (Circle’s stablecoin).
- Other products and services available to South Africans through Crypto. com app will not be affected.
“Before 10 July 2022, you can use the remaining non-rand fiat balances to purchase cryptocurrencies,” the exchange noted.
“Rest assured that your funds will remain safe and accessible to you during this transition.”
Crypto.com stated that no action is required for the time being and that clients would be notified when they must take action.
MyBroadband inquired about the move with Crypto.com, but the corporation failed to respond immediately.
Our queries included why Crypto.com is blocking non-rand fiat wallets for South African users and what benefits Crypto.com’s local customers will enjoy from working with Foris DAX.
We also inquired as to whether the exchange had lost a significant number of South African consumers as a result of the Reserve Bank’s crackdown on credit card crypto transactions from offshore exchanges.
Crypto.com speculated that the change is about delivering specific products and services in South Africa in accordance with local legislation, but provided no further details.
“We work with government officials, regulators, and expert counsel to ensure the products and services we offer in any market are compliant and tailored to the local requirements,” said the exchange’s spokesperson.
“Our customer support team is available to handle any inquiries.”