The Financial Services Conduct Authority (FSCA) of South Africa has put out a Press statement saying it is investigating the activities of Mirror Trading International (MTI).
MTI is a purpotedly crypto trading network that claims to employ bots in order to conduct high-frequency derivates trades with clients’ pooled bitcoins, and claims to consistently generate 10% monthly returns.
According to the FSCA, the activities of MTI amount to financial services which the company does not possess.
In a statement, FSCA said:
“MTI has informed us that they accept clients’ funds in the form of Bitcoin, pool the funds into one trading account on a forex derivative trading platform, and conduct high frequency trading through the utilisation of a Bot. If this is being done as described, then this amounts to financial services, hence the licence requirement.
However, the FSCA has a much greater concern about the activities of the company. MTI claims to have more than R2.9 billion (at current conversion rates) in clients’ funds in trading accounts, but we have not been able to conclusively confirm that the funds exist.”
FSCA says the consistent average profits of 10% per month returns on investments claim by MTI seem ‘far-fetched ad unrealistic.’ As a result, ‘the FSCA warns the public that MTI is not licenses to conduct the proclaimed business that they are conductind and that they are aware of the need for the FSP license.’
MTI however seem to have been complying with the regulator and has even undertaken to inform all of its clients of the investigation and to provide the opportunity to all its clients to withdrawaw their assets that are with MTI.
The press release concludes by saying:
“We recommend that clients request refunds into their own accounts as soon as possible.”