FSCA gives Ovex the all clear, apologises

THE FINANCIAL Sector Conduct Authority (FSCA) on Friday apologised to Ovex after concluding an investigation, saying it did not currently require a licence from the FSCA because its business activities fell outside the current jurisdiction.

Ovex is a Bitcoin and cryptocurrency exchange that offers a selection of digital asset markets.

The FSCA had previously warned the public that Ovex did not have a financial services licence.

It had previously raised concerns that Ovex was running radio advertisements that asked the public to invest R50 000 with the company, to take advantage of arbitrage in the dollarversus rand-denominated cryptocurrency markets.

“The FSCA has now received the necessary information in order to finalise our preliminary investigation. Based on the information provided by Ovex, we are satisfied that Ovex does not currently require a licence from the FSCA, as its business activities fall outside the current jurisdiction of the FSCA. The previous media release has been retracted. The investigation is closed, and we apologise,” it said.

The FSCA has been closely monitoring crypto financial services because of an increasing number of fraudulent activities in the crypto asset and online trading environment.

The FSCA reminds people who want to conduct financial services with an institution or person to check beforehand with the FSCA on 0800 110 443 (toll-free) or on https:// www.fsca.co.za/fais/search_fsp.htm whether such institution or person is authorised to render financial services.