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South Africa Government Refines Crypto Regulations Following Ponzi Scheme Shutdown

By Jenny Aurora | February 2, 2021
Owning Bitcoin to get Harder in South Africa?

Lawmakers from South America are reportedly looking to establish enhanced supervision towards crypto trading, after the shutdown of what seemingly the most major Ponzi scheme ever recorded across the nation. 

Specifically, self-deemed Bitcoin (BTC) trading entity Mirror Trading International reportedly underwent provisional liquidation in December last year, with unsuccessful withdrawal attempts of investors’ funds. 

The company reportedly has captured the interest of more than 260,000 memberships throughout the globe, handling a reported 23,000 Bitcoin – equivalent to $716 million in the area. 

Nonetheless, an investigation by the Financial Sector Conduct Authority reportedly showed that the company is not in possession of any accounting records, nor any type of user database.

The firm’s management reportedly stated that its Head, Johann Steynberg, has tricked them and seems to have gone to Brazil to hide. 

The lawyers representing the rest of Mirror Trading management board reportedly emphasized that FSCA is yet to put out concrete decision classifying MTI as a functional Ponzi scheme, only that it lacks appropriate license for trading – this type of incident needs to be put an end to prior to its taking the final damaging form, per FSCA’s head of enforcement, Brandon Topham. 

To tackle the situation, the government is reportedly putting out proposals to establish formal regulations towards the trading of crypto coins, nominally Bitcoin.                                        

“I have been on radio shows where people say, ‘I am a professional Ponzi investor. You get in quick and get out and like with any business you have to risk money to make money.’ We need to make an example of MTI so that people understand that investing in a Ponzi is never a good idea.”

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