South Africa’s Financial Watchdog Warns Users Against FTX and Bybit Exchange
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- The FSCA declared plans to build a regulated framework.
- ByBit has expressed a readiness to seek authorization.
According to South Africa’s financial watchdog, consumers should be “cautious and vigilant” while dealing with crypto exchanges FTX and Bybit. FTX is not permitted to deal in contracts for difference (CFDs), which are products that enable traders to bet on the short-term fluctuation of an asset’s price, according to the Financial Sector Conduct Authority (FSCA).
Founder and CEO of FTX, Sam Bankman-Fried, tweeted that the business had contacted the FSCA to begin a discussion and that he was unaware of any previous attempts by the agency to communicate.
Readiness to Seek Authorization
In the same vein, the FSCA sent out a warning on the crypto exchange Bybit. Derivatives trading is available via the company’s web-based trading platform, located in Seychelles. South Africa’s Market Conduct Authority Body has discovered that ByBit allows the South African public to trade derivatives products on its online platform.
According to the FSCA, ByBit has expressed a readiness to seek authorization to conduct financial advising and intermediary services in South Africa after a conversation between the two. When dealing with ByBit, the public was warned to be careful until they had applied for and got authorization from the Financial Services Authority.
Following a series of large-scale thefts involving cryptocurrency firms in South Africa last year, the Financial Services Commission of Africa (FSCA) declared plans to build a regulated framework on how cryptocurrency trading should be done in December. In the latter half of this year, the public will be informed of the framework’s status.
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