FSCA Warns Public Against KuCoin

The Financial Sector Conduct Authority (FSCA), South African financial markets regulator, has warned the public to act with caution when dealing with a local entity called KuCoin.

This entity, which is not authorised to render financial advice or intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) and is not regulated by the FSCA, appears to be offering a financial product to members of the public. As the entity is not registered with the FSCA, it is conducting unauthorised financial services business and any customers using its financial services or -products does so at significant financial risk.

The FSCA could not establish whether the local company called KuCoin is linked to the international cryptocurrency exchange with the same name based in Singapore, but suspects that the two companies are not related.

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.