FSCA Warning

THE FINANCIAL Sector Conduct Authority (FSCA) has warned the public to be cautious when doing business with Bitcoin Xpress (Btcoin Express), because it was not authorised to render financial advisory and intermediary services. According to its website, Btcoin Xpress is an international online broker that offers financial services in various financial instruments. The website claims that Btcoin Xpress has been around since 2013 and has processed more than $8 billion (about R118bn) in transactions and has satisfied customers in more than 40 countries. Btcoin Xpress also claims to be authorised and regulated by the FSCA under financial services provider (FSP) number 46614. The FSCA said this was incorrect and false, because Btcoin Xpress was not authorised as an FSP. The FSP number 46614 belonged to Forextime trading as FXTM, an authorised FSP. The FSCA said it had contacted FXTM to establish whether there was a relationship between it and Btcoin Xpress. FXTM had since confirmed that there was no relationship between it and Btcoin Xpress. It seemed likely that Btcoin Xpress was conducting unauthorised financial services business and fraudulently using another FSP’S licence number. Additionally, to legally operate in South Africa, Btcoin Xpress requires authorisation from the FSCA to conduct financial services business, the authority said. The FSCA said it had contacted Btcoin Xpress to obtain their view about the alleged relationship between it and FXTM. Btcoin Xpress had not responded to the FSCA’S latest correspondence.

| Staff Reporter