ARTICLE · 17 MARCH 2021

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The FSCA Issues Warning On Investing In Crypto Assets

Werksmans Attorneys

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In the wake of the recent Mirror Trading International Proprietary Limited debacle, the Financial Sector Conduct Authority ("FSCA") has again cautioned investors against investing in crypto assets...

South AfricaTechnology

In the wake of the recent Mirror Trading International Proprietary Limited debacle, the Financial Sector Conduct Authority ("FSCA") has again cautioned investors against investing in crypto assets, which are currently not regulated by the FSCA. In a press release issued by the FSCA on 4 February 2021, investors were warned of a number of high risks associated with investing in crypto assets, which include the following –

crypto investment firms (i) overstate the amount of expected returns on investments and (ii) understate the high risks and price volatility associated with crypto asset investments;
once an investor has invested in crypto assets, there is no guarantee that said investor will receive his/ her/ its initial investment back, and as such, investors must be prepared to lose 100% of his/ her/ its investment; and

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