South Africa: FCSA Warns Traders About FTX and ByBit Exchange

Governments and financial institutions are formulating regulatory frameworks to regulate the crypto industry. The trend was witnessed most recently in South Africa, where financial regulators warned crypto traders about using the FTX crypto exchange.

As one of the most well-known crypto exchanges across the globe, FTX exchange serves millions of users. Thus, the warning affected FTX Trading Limited’s market reputation substantially. As expected, this caused many users to look for an unbiased and comprehensive online FTX exchange review for details about the platform.

The South African authorities, namely the Financial Sector Conduct Authority, released two major notices to users. The intent behind the notices was to warn users about using the Seychelles-based ByBit and Bahamas-based FTX. According to the Financial Sector Conduct Authority, the companies do not possess the authority to provide intermediary services or financial advice in the region.

The notice continued, saying ByBit has been providing access to its virtual trading platform to South Africans. Similarly, FTX is also allowing users to invest in derivative instruments. The FSCA cleared that FTX can only offer CFD trading or similar contracts after gaining a license from the regulator. 

The warning came at an interesting time since the region is planning to introduce its regulatory framework for cryptos. However, FTX tweeted that the FSCA is yet to contact the organization, and whenever they do, the FTX team would be excited to cooperate with the regulator. 

On the other hand, ByBit stated that the exchange was working with the FSCA and would continue the interaction to resolve any issue. The FSCA has previously stated that it has not been able to talk to FTX.