South Africa’s financial watchdog issued a notice warning consumers to be “cautious and vigilant” when dealing with crypto exchanges FTX and Bybit.
- The Financial Sector Conduct Authority said Tuesday that FTX is not authorized to trade in contracts for difference (CFDs), which are instruments that allow traders to speculate on the short-term movement of an asset’s price.
- “It has come to the attention of the FSCA that FTX might be offering the South African public, access to its online platform to trade in amongst others, derivatives instruments,” the FSCA said.
- “FTX is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.”
- The FSCA also issued a notice to the same effect regarding crypto derivatives exchange Bybit.
- Bybit has said it wishes to apply with the FSCA for the required authorization. FTX has not responded to the regulator’s communication.
- FTX had not responded to CoinDesk’s request for comment at press time.
- Following a pair of major scams involving crypto companies in South Africa last year, the FSCA announced plans in December to prepare a regulatory framework on how crypto trading should be conducted. The framework is set to be unveiled early this year.