South Africa Exchange Banxso’s License Suspended Over Misleading Claims and Deepfakes
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
South Africa’s Financial Sector Conduct Authority (FSCA) provisionally withdrew the financial services provider license of the trading platform Banxso on Wednesday, citing concerns over its marketing practices that promised unrealistic returns to clients.
The move follows allegations that Banxso employed deep fakes in its advertising campaigns and used aggressive sales techniques to pressure clients into investing without proper risk assessments.
#WarningWednesdays
The FSCA provisionally withdraws the FSP licence of Banxso (Pty) Ltd.
Full statement here: https://t.co/MijZKuxY6q#TCF #consumerprotection pic.twitter.com/3iW9dko5lD
The FSCA raised the alarm about Banxso’s potential involvement with deep fake ads featuring high-profile billionaires like Elon Musk, Johann Rupert, and Nicky Oppenheimer. These ads allegedly lured investors, resulting in substantial losses.
Many clients said they lost money after deciding to invest. Banxso has denied links to the adverts which spread on social media.
Banxso, which targeted tech-savvy South African millennials with a diverse investment portfolio, promised substantial returns on investments that the FSCA deemed unrealistic.
The authority expressed particular concern over the “aggressive and pressurized sales techniques” employed by Banxso’s agents.
However, the FSCA noted that Banxso agents frequently failed to conduct necessary risk and need analyses before selling financial products, exacerbating concerns about client protection.
In response to the troubling practices, the FSCA has alerted the
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