So in South Africa, bitcoin is seen as an asset and because of this, any bitcoin mined in the country or brought into the country by a regulated entity is fine as they clear with the reserve bank to swap funds for lets say USD to buy the bitcoin, but when you a retail user sending payments to external sites like Binance, it's seen as offshore bitcoin and capital flight, which the government doesn't want

It wants to be able to keep an eye on capital flows and obviously to tax companies, its' easier to do that with a local exchange than a binance. They also want to encourage these big exchanges to set up locally too to bring capital into the country

I know it's dumb but that's their take on it

If you do use international exchanges as a retail trader you carry risk, You can get fined or even face jail time, obviously, a regulation and enforcement especially in a 3rd world country are two different things but I always encourage people to be cautious of their government and not to give them any ammo to nail them