South Africaâ€™s Financial Sector Conduct Authority (FSCA) has apologized to a Cape Town-based crypto start, Ovex, less than 24 hours after warning that the firm was operating outside the law.
Ovex Does Not Require Licence From FSCA
In its May 7 retraction, the financial watchdog said the findings of an investigation into Ovex, which specializes in crypto arbitrage services, suggest that the firm is operating outside the FSCAâ€™s purview. The statement says:
Meanwhile, the FSCAâ€™s about-face comes after its head of enforcement, Brandon Topham, was quoted in the local media defending the regulatorâ€™s initial handling of the matter. Responding to a media inquiry, Topham admitted that the issuing of the warning did not mean Ovex was â€œoperating unlawfully.â€ Instead, the warning statement, according to Topham, was intended to urge the investing public to be cautious when dealing with Ovex â€œas they are making claims of returns.â€
However, according to a report, the FSCA executive did admit at the time that the regulator might have â€œjumped the gunâ€ and that an amendment to its warning statement would be made once more information was obtained.
In the meantime, the same report also carried Ovexâ€™s initial response to the â€œdamagingâ€ warning that it said was â€œissued without giving the company time to respond to questions sent earlier in the week.â€ In its statement, Ovex said:
The crypto firm also said it had stopped its advertising campaign until this issue was resolved and that it expected the FSCA to issue a full retraction.
What do you think of the FSCAâ€™s withdrawal of the public warning against Ovex? Tell us what you in the comments section below.
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