title: FSCA Warns Against Unlicensed Crypto Trading Firms

South Africa’s Financial Sector Conduct Authority (FSCA) has warned against unlicensed crypto trading firms. The regulator states these companies operate illegally

The Financial Sector Conduct Authority (FSCA) has warned against two unlicensed crypto trading firms in South Africa.

According to the regulator, AfriInvest and MutualWealth are operating illegally by asking people to provide funding.

However, the financial risks along with fraud possibilities have become a concern for people who invest their funds with these companies.

The FSCA stated that both businesses lack authorization to offer financial services throughout South Africa.

Moreover, the regulatory authority tried reaching out to AfriInvest and MutualWealth without success after multiple attempts.

The failure to provide transparent information promotes additional concerns about their authentic status.

The FSCA warns people to proceed with great caution with their interactions involving financial service providers.

Operating without the required licenses places serious risks upon firms since they do not fall under any regulatory authority oversight.

Investors who conduct business with unauthorized providers remain unprotected by law while financial disruptions occur.

Customers must determine whether authorized financial services exist for both companies and individuals under investigation.

Verification of FSCA authorization must be performed by investors to guarantee safety in their financial transactions.

Prospective clients can verify authorization by checking it in official provider documentation.

Investors need to investigate further before committing to financial deals when the provider does not share their authorization information.

The FSCA identifies unapproved financial advice materials and unauthorized investment proposals as potential threats to investors.

Fraudsters Use Social Media to Target Investors

Social media platforms are often used by fraudulent firms to target investors.

The Financial Sector Conduct Authority instructs people to maintain high alertness regarding investments prompted without demand because such proposals frequently carry significant dangers.

The practice of social media exploitation by scammers to catch innocent investors requires checking all claims before any financial commitment.

Everyone must verify essential financial service provider information before business engagement occurs.

As a prerequisite, people need to verify that both individuals and entities hold valid authorization from the FSCA.

All investors need to verify which types of financial advice the provider holds approval to provide.

Authorized firms that operate in low-risk product roles might provide unauthorized help regarding high-risk investment opportunities.

The public should validate the Financial Services Provider (FSP) number of businesses against their recorded name in the FSCA database.

Mismatched information between the provider and the FSCA at the FSCA signifies a definite warning indicator.

The FSCA maintains multiple public tools to let customers verify their providers and FSP numbers, thus protecting them from fraudulent activities.

Lastly, the FSCA urges all South Africans to exercise caution when working with any unlicensed cryptocurrency firms.

People who want to avoid financial loss should confirm that their investment providers are properly licensed first.

The regulator remains committed to protecting consumers and ensuring that only authorized firms operate in the financial sector.