The Financial Sector Conduct Authority (FSCA) of South Africa has launched an investigation into possible breaches of financial sector laws by Banxso, an online trading platform. This move follows an investigation by a South African media outlet, which revealed that individuals interacting with advertisements for Immediate Matrix were subsequently registered as Banxso customers. However, Banxso has denied any affiliation with Immediate Matrix, asserting that the platform registered investors on Banxso without its consent.
In a press statement, the FSCA confirmed that Banxso (Pty) Ltd is authorised as a Category I financial services provider (FSP number 37699). The regulator emphasized that the investigation is ongoing, with no conclusions drawn so far. It also noted that Banxso is fully cooperating with the probe.
Background on Immediate Matrix
The FSCA had previously issued a cautionary statement in December 2023, warning against Immediate Matrix—a platform claiming to specialize in Bitcoin trading and management. Immediate Matrix was accused of using deceptive advertising tactics, including the unauthorized use of images and videos featuring prominent figures like Elon Musk and Patrice Motsepe. According to the FSCA, these promotional materials employed deepfake technology to lend credibility to an AI trading application that promised unrealistically high returns on investments.
The FSCA clarified that Immediate Matrix is not licensed to offer financial products or services in South Africa. This warning highlighted the risks posed by platforms making exaggerated claims and operating outside the regulatory framework.
Complaints and Investigation
The FSCA’s inquiry into Banxso follows numerous public complaints about its practices. While Banxso denies involvement with Immediate Matrix, the regulator deemed the allegations significant enough to warrant a formal investigation.
“The FSCA emphasizes that the investigation is not completed and that it has made no findings to date. The FSCA records that Banxso is cooperating fully with the investigation,” the statement read.
The regulator urged affected members of the public to share any relevant information to aid the investigation. Individuals can contact the FSCA via email at [email protected], using the subject line: Banxso Investor.
Regulatory Progress in South Africa’s Crypto Sector
In parallel developments, the FSCA recently issued the first batch of licenses for crypto asset service providers. VALR, a cryptocurrency platform, became one of the first to receive regulatory approval in both Category 1 and 2 FSP licenses, signifying progress in bringing South Africa’s crypto market under formal oversight.
While the FSCA continues to address unregulated entities like Immediate Matrix, this licensing initiative demonstrates its commitment to safeguarding investors and promoting legitimate operations in the financial and crypto sectors.
