Cryptocurrency exchange Crypto.com has announced that it is launching a rand wallet, non-rand fiat wallets would be disabled for its South African customers, any remaining non-rand fiat balances after 10 July 2022 will be converted to USDC (Circle’s stablecoin).
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“We have partnered with a local bank to compliantly offer certain products and services that are in line with local regulations, applicable law, and customer demand,” a spokesperson told MyBroadband.
Crypto.com is known for buying the naming rights to the Staples Centre stadium (now the Crypto.com Arena), which is home to the Los Angeles Lakers basketball team.
This was in addition to spending large sums on its “Fortune Favours the Brave” commercials starring celebrities like Matt Damon and LeBron James.
The exchange sent a notice to its South African customers on Friday informing them of the coming changes.
“We are pleased to announce that we have made progress in our expansion of services in South Africa,” Crypto.com stated.
“Please be informed that Foris DAX SA (Pty) Ltd will become the contracting entity of the Crypto.com App on 10 July 2022.”
To continue using the exchange, customers in South Africa must accept its updated terms and conditions with Foris DAX, which will take over the management of their accounts.
“Before 10 July 2022, you can use the remaining non-rand fiat balances to purchase cryptocurrencies,” the exchange stated.
“Rest assured that your funds will remain safe and accessible to you during this transition.”
Crypto.com said no action is required for now and that customers would be notified when they need to do something.
MyBroadband asked Crypto.com for more information about the change, but the company declined to answer directly.
Questions asked includes; Why Crypto.com is disabling non-rand fiat wallets for South African users?, What its local customers gain from partnering with Foris DAX?, Did the exchange lost a lot of South African customers because of the Reserve Bank’s crackdown on credit card crypto purchases from offshore exchanges?
Crypto.com suggested that the change is about offering certain products and services in South Africa in compliance with local laws, but did not elaborate further.