South African Regulator, FSCA, Wants Tighter Regulation for Trading Cryptocurrencies, Says a Bloomberg Report

Following the widely-publicized expose’ of Mirror Trading International crypto ponzi scheme in South Africa, it looks like the regulator wants tighter control of the industry. Speaking to Bloomberg, Brandom Topham, Head of Enforcement, Financial Sector Conduct Authority (FSCA), said the watchdog is making proposals to regulate the trading in cryptocurrencies in the country. ___________________________________________________________________ SEE ALSO: South African Court Moves to Liquidate MTI Scam Scheme of Allegedly Over 23,000 Bitcoins ___________________________________________________________________ In the interview, Topham said: “At the point something becomes a Ponzi scheme, we have lost our jurisdiction. We need the police and the prosecuting authority to work fast and put people in jail.”                                      – Head of Enforcement, FSCA The above statement comes amidst ongoing investigations into MTI which is alleged to have defrauded over 280, 000 members of over 23, 000 bitcoins. MTI was apparently trading crypto since no license is required to do that. In fact, the watchdog cannot yet conclude if MTI was a ponzi scheme due to this jurisdictional limitation, and can only investigate and prosecute a case of trading without a license. Investigators have failed to trace all of the company’s assets as the expected final liquidation order on March 1, 2020, draws near. “We need to make an example of MTI so that people understand that investing in a Ponzi is never a good idea.”                           – Head of Enforcement, FSCA In 2020, the FSCA put out a draft declaration notice of crypto assets as a financial product. The classification is an interim solution to address some of the immediate consumer risks and immediately capture intermediaries in the industry. It looks like the watchdog is determined to take their jurisdiction eeven further with this revelation. We can only hope that the said proposals will prove friendly to the many legit crypto firms in South Africa and help grow the industry rather than restrict it. ___________________________________________________________________ RECOMMENDED READING: The EFCC Nigeria Reportedly Declares Pinkoin and InksNation Blockchain Projects Founder Wanted for Over $82, 000 Crypto Fraud ___________________________________________________________________ Follow us on Twitter for latest posts and updates _____________________ Subscribe to the channel below to keep updated on latest news on video: [embedded content] ___________________________________________________________________ Start trading bitcoin today from as low as $10. Open a Paxful Bitcoin Trading Account to get started! ___________________________________________________________________

South African Regulator, FSCA, Wants Tighter Regulation for Trading Cryptocurrencies, Says a Bloomberg Report

Following the widely-publicized expose’ of Mirror Trading International crypto ponzi scheme in South Africa, it looks like the regulator wants tighter control of the industry.

Speaking to Bloomberg, Brandom Topham, Head of Enforcement, Financial Sector Conduct Authority (FSCA), said the watchdog is making proposals to regulate the trading in cryptocurrencies in the country.

___________________________________________________________________

SEE ALSO: South African Court Moves to Liquidate MTI Scam Scheme of Allegedly Over 23,000 Bitcoins

___________________________________________________________________

In the interview, Topham said:

“At the point something becomes a Ponzi scheme, we have lost our jurisdiction. We need the police and the prosecuting authority to work fast and put people in jail.”

                                     – Head of Enforcement, FSCA

The above statement comes amidst ongoing investigations into MTI which is alleged to have defrauded over 280, 000 members of over 23, 000 bitcoins.

MTI was apparently trading crypto since no license is required to do that. In fact, the watchdog cannot yet conclude if MTI was a ponzi scheme due to this jurisdictional limitation, and can only investigate and prosecute a case of trading without a license.

Investigators have failed to trace all of the company’s assets as the expected final liquidation order on March 1, 2020, draws near.

“We need to make an example of MTI so that people understand that investing in a Ponzi is never a good idea.”

                          – Head of Enforcement, FSCA

In 2020, the FSCA put out a draft declaration notice of crypto assets as a financial product. The classification is an interim solution to address some of the immediate consumer risks and immediately capture intermediaries in the industry. It looks like the watchdog is determined to take their jurisdiction eeven further with this revelation.

We can only hope that the said proposals will prove friendly to the many legit crypto firms in South Africa and help grow the industry rather than restrict it.

___________________________________________________________________

RECOMMENDED READINGThe EFCC Nigeria Reportedly Declares Pinkoin and InksNation Blockchain Projects Founder Wanted for Over $82, 000 Crypto Fraud

___________________________________________________________________

Follow us on Twitter for latest posts and updates

_____________________

Subscribe to the channel below to keep updated on latest news on video:

___________________________________________________________________

Start trading bitcoin today from as low as $10.

Open a Paxful Bitcoin Trading Account to get started!

___________________________________________________________________