FSCA Reiterates the Suspension of Banxso's License as the Broker Still Conducting Financial Services Business

On November 12, South Africa's Financial Services Conduct Authority (FSCA) issued an announcement, stating that Banxso may misled investors and reiterated that Banxso's FSCA license remains suspended.

“The Authority reiterates that Banxso's license has not been reinstated and that it cannot lawfully conduct any financial services business or receive any deposits from clients for such purpose. ”

Last month, South Africa's financial regulator suspended Banxso's financial license. The regulator believed that the broker could pose a significant risk to clients because of its aggressive sales tactics and advertisements involving “deepfake” technology.

On October 2, South Africa's Financial Intelligence Center (FIC) froze Banxso's bank accounts. Banxso's appealed to the court but was rejected.

The accounts were unfrozen later, but Banxso was not allowed to withdraw or permit the withdrawal of any funds in the accounts by the court, except for the purpose of transferring client funds to another authorized financial service provider.

However, Banxso allegedly claimed that its license was reinstated and could provide financial services after the accounts were unfrozen. Clients reported that Banxso continued its financial service business despite the pause of its license and encouraged them to invest more funds to cover trading losses.

FSCA is investigating the matter and interviewing relevant witnesses.

In addition, FSCA reminded us that Banxso had applied for liquidation at the Western Cape High Court.