The South African regulatory authority calls on the public to be more careful when dealing with FTX, Bybit regulation
The South African regulatory authority calls on the public to be more careful when dealing with FTX, Bybit regulation
The Financial Sector Conduct Authority (FSCA) warned the investing public to be careful when trading on the FTX and Bybit cryptocurrency platforms. The FSCA claims that none of the companies for trading with differential contracts (CFD) or the provision of financial advice and placement services in South Africa has been licensed.
ftx is not entitled to issue financial advice
The South African Financial Service Supervisory Authority FSCA recently stated that the public must be careful when dealing with the FTX cryptocurrency exchange. According to the supervisory authority, FTX is not entitled to issue financial advice or to provide mediation services within the meaning of the laws of the country.
in his 1st February Media release The regulatory authority emphasized that a party before it offers CFD or placement services must be licensed by the FSCA. The media declaration explained:
Without commenting on FTX's business or its products and services, the FSCA points out that a company who wants to offer CFD trading (Contracts for Difference) in South Africa must be licensed by the FSCA. The FSCA would like to inform the public that FTX is not entitled to trade CFDs or to provide financial advice and placement services in South Africa.
The supervisory authority added that the efforts to contact FTX, which has its headquarters on the Bahamas, had remained unsuccessful. In the meantime, the FSCA says that “members of the public should always check whether a company or an individual is registered with the FSCA to offer financial advice and placement services.”
The supervisory authority also warned the public against persuading people or companies that are registered "to provide basic advisory services for a product with little risk", but still "offer services with far more complex and risky nature".
warning of bybit
meanwhile another Media report that warns the public about dealing with Bybit was also published by the supervisory authority on February 1, 2022. In this declaration, too, the supervisory authority confirms that BYBIT is not licensed for the provision of financial services for South Africans.
In contrast to FTX, BYBIT has already expressed his "willingness to apply for approval for the provision of financial advisory and placement services in South Africa". In this declaration, the FSCA concludes with the request to the public to "remain careful when dealing with Bybit until they have applied for and received the approval of the FSCA".What do you think about this story? Tell us your opinion in the comments below.
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