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Tuesday, June 22, 2021

FSCA’s caution and withdrawal against Ovex causes damage and confusion

A caution on crypto-asset company Ovex was both issued and taken back by The Financial Sector Conduct Authority (FSCA) in the span of a few hours Yesterday.

At first, when the issue was published on Thursday, its claim was that Ovex was in charge of unregistered business and that it also provided counseling and negotiator services in an unauthorized way.

Ovex has a crypto assets service in which users are able to use price differences in crypto arbitrage between local and abroad trading.

However, after a few hours on Thursday, FSCA had already taken back the warning by stating that Ovex is in fact in correlation with the regulator. Furthermore, they also said that it’s not essential for its business model to possess a financial services provider authorization since it doesn’t manage financial services. Because the FSCA is further looking into these matters, they decided to withdraw their previous warning at an unspecified time until the investigation is done.

FSCA’s head of enforcement Brandon Topham talked to Moneyweb to clear up the confusion of this warning and he said that they re not claiming Ovex is working in an illegitimate way, they simply want to warn anyone who works with Ovex because there have been claims of returns. Because the FSCA is further looking into these matters, they decided to withdraw their previous warning at an unspecified time until the investigation is done.

This warning proved to be quite damaging for Ovex because they had no opportunity or time to respond to these allegations.

”Ovex always acts in a 100% compliant, legal, and ethical manner, seeking legal and compliance advice with every action. We have halted our advertising campaign until this issue is resolved, which we expect to be this week. Once resolved, we expect the FSCA to issue a full retraction, as this is extremely damaging to one of South Africa’s fastest-growing companies.” said Ovadia – CEO of Ovex.

Regarding this, FSCA’s Topham also admitted that they may have made things public too fast by not giving Ovex time to say something and respond to everything.

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