South African Authorities Urged Investors To be Wary of Crypto Scams With New Warnings

By Chris Torres | February 19, 2021

South Africa’s Financial Sector Conduct Authority is reportedly issuing warnings towards investors, to be extra careful against crypto scams during the ongoing crypto bull market. 

Specifically, the FSCA reportedly urged the general audience to carry out the needed examination prior to deciding to invest in any crypto-associated initiatives. 

Per the FSCA, the high-risk nature of the crypto investment sphere is being amplified in a bad way, because of the wide array of elaborate cryptocurrency scams in the nation – which has led to more scrutiny in regulations from the government. 

In January 2021, interim liquidators of an alleged South African Bitcoin scam reportedly urged for an official order to examine the suspected multi-level marketing scheme.

 In August last year, the FSCA had reportedly warned investors to steer clear from Mirror Trading International, the firm in the center of the fraud investigation.

Providing feedback regarding the obvious herd mindset exploited by crypto scams, the FSCA in its communique claimed “Do not be pressured to go with the flow and do not be afraid of being left out of the ‘next big thing.’”

The FSCA additionally disclosed its plan to also apply regulations to numerous parts of the crypto sphere, as part of the partnership with the nation’s Intergovernmental Fintech Working Group.

In December last year, the FSCA already recognized cryptos as financial products. 

At the same time, South Africa’s tax agency is reportedly applying stricter crypto tax adherence monitoring activities. 

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