{"id":8762,"date":"2021-06-25T12:54:17","date_gmt":"2021-06-25T12:54:17","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/africrypt-ponzi-scheme-collapse-south-africa-regulator-says-its-not-in-a-position-to-take-any-regulatory-action\/"},"modified":"2021-06-25T12:54:17","modified_gmt":"2021-06-25T12:54:17","slug":"africrypt-ponzi-scheme-collapse-south-africa-regulator-says-its-not-in-a-position-to-take-any-regulatory-action","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/africrypt-ponzi-scheme-collapse-south-africa-regulator-says-its-not-in-a-position-to-take-any-regulatory-action\/","title":{"rendered":"Africrypt Ponzi Scheme Collapse: South Africa Regulator Says Its \u2018Not in a Position to Take Any Regulatory Action\u2019"},"content":{"rendered":"

Following Africrypt\u2019s collapse, South African regulator, the Financial Sector Conduct Authority (FSCA), released a statement asserting its lack of jurisdiction over cryptocurrencies. Although the regulator says it is \u201ccontinuing to investigate complaints\u201d against the crypto investment company, it concedes it has only \u201cfound evidence of crypto-asset transactions.\u201d<\/strong><\/p>\n

A Large Number of Scams<\/h2>\n

While the FSCA says it\u2019s not in a position to take any regulatory action, in a statement<\/a> released June 24, 2021, the regulator uses the Ponzi scheme\u2019s global notoriety to warn the public about the \u201chigh-risk nature of investing in crypto assets.\u201d<\/p>\n

Meanwhile, in addition to the FSCA\u2019s concerns surrounding the \u201csuitability of crypto assets as an asset class\u201d as well as their volatility, the regulator expressed concern over \u201cthe large number of scams being perpetrated by persons purporting to provide the crypto asset to the public.\u201d According to the FSCA, many of the crypto investment companies are in fact fraudulent operations that may be based outside South Africa. The FSCA states:<\/p>\n

Many of these entities (which we refer to as intermediaries) are often not based in South Africa or have poor security in place to protect the crypto asset being acquired by the public, and in theory, held on behalf of the customer. Often, however, these intermediaries are just fraudulent operators.<\/p>\n

Although the regulator concedes that the South African crypto-asset sector \u201chas a number of legitimate players offering a legitimate service\u201d it urges investors to remain vigilant as there is a \u201cvery large number of unscrupulous players in this sector.\u201d<\/p>\n

<\/p>\n

Africrypt Takes Page From MTI Playbook<\/h2>\n

In its statement, the FSCA \u2014 which is in the process of considering declaring crypto assets a financial product \u2014 says it will \u201ccontinue to update the public as more information becomes available regarding Africrypt.\u201d The statement also urges investors to \u201calways check that an entity or individual is registered with the FSCA to provide Financial Advisory & Intermediary Services.\u201d<\/p>\n

Just like Mirror Trading International (MTI), which Chainalysis ranked<\/a> as the biggest bitcoin scam in 2020, Africrypt collapsed<\/a> after its directors disappeared with investor funds. Also like MTI, the end of Africrypt was preceded by a breach and subsequent freeze in withdrawals sometime in April 2021.<\/p>\n

At the time, Africrypt directors Ameer Cajee and his brother Raees Cajee, told investors the breach had compromised \u201cclient accounts, wallets, and nodes.\u201d However, in anticipation of possible legal challenges, the directors warned clients against taking the legal route as \u201cthis will only delay the recovery process.\u201d Since the hack announcement, the Cajee brothers have disappeared and local media outlets speculate they fled to the UK.<\/p>\n

What are your thoughts on the FSCA\u2019s response to Africrypt\u2019s collapse? You can share your views in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Africrypt, Africrypt Ponzi scheme, Ameer Cajee, crypto-assets regulation, Financial Sector Conduct Authority, FSCA, MTI, Raees Cajee, South Africa crypto regulation<\/p>\n","protected":false},"excerpt":{"rendered":"

Following Africrypt\u2019s collapse, South African regulator, the Financial Sector Conduct Authority (FSCA), released a statement asserting its lack of jurisdiction over cryptocurrencies. Although the regulator says it is \u201ccontinuing to investigate complaints\u201d against the crypto investment company, it concedes it has only \u201cfound evidence of crypto-asset transactions.\u201d A Large Number of Scams While the FSCA…<\/p>\n","protected":false},"author":0,"featured_media":8763,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8762"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8762"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8763"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}