FSCA Warns Public Against Binary Trade

The Financial Sector Conduct Authority (FSCA), South African financial markets regulator, has warned the public to act with caution when dealing with with Binary Trade, which is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

According to the information received by the FSCA, the individuals running Binary Trade approach members of the public on Facebook and promise to trade in bitcoin on their behalf. Members of the public are provided with what appears to be two different authorization certificates which reflects the name "Binary Trade" and allege that the entity is authorised by the Authorities in New York and Texas City to trade in bitcoin. The Authority is in the process of confirming the authorisation with these overseas regulators.

Members of the public are then directed to the website address: http://Xpressmarketfx.com wherein they are advised to view information about Binary Trade. However, this website refers to an entity called Xpress Market Fx. Attempts to get a response from Xpress Market in respect of its business and relationship with Binary Trade were unsuccessful.

Despite clients' request to withdraw their funds, they did not receive their payments. The FSCA was unable to get a response from Binary Trade.

The FSCA confirms that neither Binary Trade nor Xpress Market Fx are authorised by the FSCA to render any financial services. 

The FSCA warns that members of the public should always check that an entity or individual is registered with the FSCA to provide Financial Advisory & Intermediary Services and what category of advice it is that the entity is registered to provide. 

It again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA as to whether or not such institution or person is authorised to render financial services.