Crypto exchange Kraken stopped top-up services for South African residents last Friday, after its former banking partner blacklisted South Africa for anti-money laundering.
As a result, crypto arbitrage premiums in South Africa last week ranged from 0.7% to 1.5%, surging to 3.5% on Monday.
The market volatility is also a direct consequence of South Africa being graylisted by the Financial Action Task Force (FATF) in February for failing to comply with international anti-money laundering and countering terrorist financing standards. Depend on
These assets are often sold at a premium in South Africa due to local exchange controls.
Future Forex, a South African crypto arbitrage and foreign exchange provider, sent an email to customers on Monday informing them of Kraken’s deposit restrictions, saying that the company has been in talks with another provider for the past few months and that testing is in its final stages.