South Africa Bitcoin ‘Ponzi’ Scheme Out of Regulator's Reach
- Lawyers say investors could lose Bitcoin worth $3.6 billion
- Regulator warns of numerous illegal players in crypto industry
Photographer: Chris Ratcliffe/Bloomberg
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South Africa’s financial regulator says its hands are tied in the alleged $3.6 billion Bitcoin fraud at Africrypt because cryptocurrency is not yet a regulated product there.
While saying the investment platform looks like a Ponzi scheme, the Financial Sector Conduct Authority said all it can do is review complaints because “crypto assets are not regulated in terms of any financial sector law in South Africa and consequently the FSCA is not in a position to take any regulatory action.”