The Financial Sector Conduct Authority (FSCA) has opened a probe into ‘possible contraventions of financial sector laws by Banxso,’ an online trading platform.
In a press release published by local outlets, FSCA noted that Banxso (Pty) Ltd (Banxso) is authorised by the FSCA as a Category I financial services provider (with FSP number 37699).
As reported by BitKE, last December [2023], the regulatory body issued a cautionary statement, warning that Immediate Matrix, which claimed to be a Bitcoin trading and management platform was deceptionally using images of prominent business figures like billionaires Elon Musk and Patrice Motsepe in its advertising and promotional efforts.
🇿🇦 REGULATION | Regulator Warns South Africans Over Engaging with Immediate Matrix, a ‘Bitcoin Trading Platform’
The company allegedly publishes false marketing information through articles and videos, utilizing the identities of famous persons. For example, X/SpaceX/Tesla… pic.twitter.com/Ldu1waFxqP
— BitKE (@BitcoinKE) December 25, 2023
According to the FSCA, the said images were likely utilized without proper consent, a practice commonly referred to as a ‘deepfake’ scam. Immediate Matrix employed images of these renowned individuals to endorse an AI trading application which made exaggerated promises of investment returns that were unrealistic.
Moreover, FCSA which has begun issuing the first batch of FSP licenses to crypto asset service providers said that Immediate Matrix was not legally authorised to provide financial products or render financial services.
🇿🇦REGULATION | VALR Receives Category 1&2 Licenses from South African Financial Watchdog, FSCA, as a Crypto Asset Service Provider
This milestone makes VALR one of the first crypto asset platforms to receive regulatory approval in both categories in South Africa 🇿🇦.… pic.twitter.com/pgmhUOPVHw
— BitKE (@BitcoinKE) April 16, 2024
A South African outlet investigation said that individuals who interacted with Immediate Matrix advertisements and subsequently registered on its platforms immediately became Banxso customers. However, Banxso denied any link to Immediate Matrix, claiming it registered investors on the Banxso platform without its knowledge.
Nevertheless, the FSCA stated that its inquiry into Banxso was initiated following numerous complaints regarding its conduct, adding that it deems the allegations worthy of investigation.
‘The FSCA emphasizes that the investigation is not completed and that it has made no findings to date. The FSCA records that Banxso is co-operating fully with the investigation,’ it added.
‘All affected members of the public or investors who have any information regarding this matter are encouraged to contact the FSCA by sending an email to [email protected], with the subject: Banxso Investor … include any relevant information that could assist the FSCA with its investigation.’
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