South African Regulator Urges Public to Be Cautious Dealing With FTX, Bybit

The Financial Sector Conduct Authority (FSCA), has advised the investing public that they should be cautious when trading on cryptocurrency platforms FTX or Bybit. According to the FSCA, neither entity is licensed to trade in Contracts for Difference or provide financial advisory and intermediary service in South Africa.

FTX is not authorized to give financial advice

South Africa’s financial regulator, the FSCA has recently advised that people should be cautious about dealing with FTX, a cryptocurrency exchange platform. The regulator stated that FTX is not permitted to provide any financial advice or render intermediary services under the laws of South Africa.

The regulator stressed in its February 1 media release that any party offering CFD or intermediary services must be licensed by FSCA before it can offer them. This was explained in the media statement:

FSCA does not comment on the business of FTX, its products or services. However, the FSCA reminds that a company must be licensed by the FSCA to offer CFD trading in South Africa. The FSCA wants to inform the public about the fact that FTX isn’t authorized to trade CFDs in South Africa or provide financial advisory or intermediary services in South Africa.

The regulator stated that attempts to contact FTX, which has its headquarters in the Bahamas was unsuccessful. The FSCA states that “members should always verify that an entity or individual has been registered with the FSCA in order to provide financial advisory & intermediate services.”

The regulator warned that the public should be aware of persons and companies that are not registered to provide “basic advisory services for low-risk products” but continue “to offer services far more complex or risky.”

Bybit warning

On February 1, 2022, another media warning was issued by regulators informing the public not to deal with Bybit. The regulator again reiterates in this statement that Bybit isn’t licensed to provide financial services for South Africans.

According to the FSCA, however, Bybit has, unlike FTX’s, indicated that it is “willing to apply for authorisation in order to provide financial advisory services and intermediary services to South Africa.” The FSCA states that Bybit should be “remain cautious” until the authorisation has been granted.