Weekend Argus (Saturday Edition)
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Liquidation
SOUTH African cryptocurrency exchange ICE3X is closing down its operations almost a month after suspending deposits and trading, reports fintech news site PYMNTS.com. This was after the platform discovered “discrepancies” in its Bitcoin and Litecoin holdings, according to a status update published this week. The exchange has been advised to begin liquidation proceedings, it said in the update. On March 16, it suspended all deposits and trading, as well as Bitcoin and Litecoin withdrawals, after noting the discrepancies and pending a full investigation. On March 18, a preliminary investigation found a shortage in both Bitcoin and Litecoin, the exchange said.
Warning
THE Financial Sector Conduct Authority (FSCA) warns against dealing with trading site Forex TraderX, which is not authorised to render financial services. According to information received by the FSCA, the individual running the site uses Instagram to entice members of the public to invest. Investors are directed to the website www.forextraderx.com, where they are provided with banking account details to deposit their funds. Trading accounts are allegedly opened on behalf of clients, and they can view their trading activities. However, when clients request a withdrawal, they are requested to pay “withdrawal fees”, and in the end never receive any of their invested funds.
Outlook
THE International Monetary Fund (IMF) upgraded its global growth forecast in its World Economic Outlook this week. It projects the global economy to grow at 6% this year, moderating to 4.4% next year. “[The forecast] reflects the fiscal support provided in the US, vaccination efforts that will lead to a strengthening of recovery in the second half of this year, and the continued resilience of economic activity to the pandemic in many parts of the world,” said IMF chief economist Gita Gopinath. She emphasised that there are diverging recoveries across and within countries, as economies that are more reliant on tourism, have more limited policy support and a slower vaccine rollout will do less well.