South African Regulator Permanently Revokes Afrimarkets’ License Following Misconduct Probe

The Financial Sector Conduct Authority (FSCA) of South Africa has permanently withdrawn the financial services provider license of Afrimarkets Capital (Pty) Ltd. The decision follows a provisional suspension issued in July 2025 and concludes an investigation into the online trading firm’s business practices.

The regulator stated that the finalized measure effectively bars Afrimarkets from operating as a licensed financial services provider. The FSCA’s investigation reportedly found that the firm had misappropriated client funds, provided advice without the necessary authorization, and supplied false or misleading information to both clients and the authority.

Additionally, the FSCA accused the broker of promising "unrealistic investment returns" and failing to prioritize the best interests of its customers.

Afrimarkets has publicly pushed back against the allegations. In communications to clients, the firm insisted that the earlier license withdrawal and associated banking restrictions were part of an "ongoing regulatory process" rather than final adverse findings. The company stated it remained committed to regulatory compliance and was cooperating with authorities to resolve the matter.

The situation has caused significant disruption for clients, with the platform informing users that they could not make deposits, withdrawals, or open new trades. The firm also noted it was unable to close open positions on behalf of clients, leaving traders to manage these positions themselves amid the regulatory freeze.

The FSCA also highlighted connections between Afrimarkets and Banxso (Pty) Ltd, another trading entity that recently had its license withdrawn. The regulator pointed to "common directorships and similar business models" between the two firms. Banxso faced similar findings regarding the misappropriation of client money and misleading conduct.