You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Inundated with dodgy crypto schemes, the FSCA takes action

Brandon Topham on why it’s not just the authority pushing for crypto regulation.

Brandon Topham, head of enforcement at the Financial Sector Conduct Authority (FSCA), explains that the authority is inundated with Mirror Trading International-lookalike scams. It’s not just the FSCA pushing for regulation. Crypto exchanges, eager to burnish the sector’s credibility, want this too.

FSCA again urges caution, vigilance when dealing with cryptos (Mar 18)
FSCA issues warning on crypto assets (Feb 4)



Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.


Where’s the article ?

It’s a podcast … listen.

Great interview. Thanks.

Is REGULATION required?? For sure!! Should the people and entities (the team) working on the Crypto REGULATIONS be the ones to do so??? NO!!!

These are the same people that brought us REGULATION 28. The aim of this REGULATION is to protect citizens from undue risk. What was the end result??? People had to take their money offshore as the REGULATION did the opposite of what the “said” intention was. We all know its a lie and just a scam at great cost to pensioners to keep their money in the country. .

So how do we know REGULATION 28 is BS??? Get a couple of professionals to construct a REGULATION 28 compliant portfolio and also one that is not compliant and back test them. What is the answer?? The REGULATORS are the reason that those with REG 28 compliant portfolios are many times worse off than those that don’t have to comply.

I have noticed that Brandon says crypto is gambling. He is entitled to his view but what is it based on??

I also though so for many years but keeping the effect of REGULATION 28 in mind I started getting very suspicious of what the intentions are with these guys. I don’t believe it is to protect the citizen if REG 28 is anything to go by. More likely the anc government stands a chance of loosing control of the purse strings and they need a way to keep money in SA. Similar to what REG 28 does.

So why not get industry professionals to construct a portfolio without Crypto and one with Crypto and BACK TEST it and ask them to try and optimize the Crypto portion to see what % it comes to. I found quite a number of these comparisons on the internet (Offshore though) and it seems somewhere between 5 and 8% is an optimal number. The portfolio with Crypto came out tops every time. So it must be a good diversifier. Obviously Crypto does not have such a long history but I don’t believe it can just be ignored and I don’t see it as gambling.

My prediction is the REGULATION that will be implemented in SA to protect the “Investor” form undue risk will have the same effect as REG 28. Capital flight.

Your observation should be given prominence. Well thought and written.


Agreed !

Firstly, ‘Regulation’ is a two edged sword.

When it comes from Government, you can wager a bet the sword is usually one of Damocles, and hanging over our heads.

Never in my 30+ years in business and finance seen it generally work in favour FOR the citizen [ for eg – FSB ?….what a joke ! ]

Just like ‘FICA/RICA/KYC etc etc – all regulation which only serves to labour the system, punishes the ordinary citizen with a myriad of sensitive information to hand over and heaps of administrative hoops to jump [ while conveniently giving those in power all the sensitive details to be abused at will ] , while the criminals [ usually prevalent in the government/banks anyway ], keep operating no problem and fraud carries on increasing, despite all this red tape.

So what did all that FICA etc red tape help ?


Same will apply to the crypto industry – in a nutshell, this is governments last chance to try and get their dirty little fingers in this massive growing cookie jar, all under the guise of ‘Regulation’

If any regulation is required, then the best regulation is common sense – just as transacting in your daily business and private life, apply common sense when it comes to crypto.

Problem is, common sense is not so common these days.

And so that vacuum is always filled with a dubious ‘Regulating’ body, usually those in power, fulfilling their own agenda’s and that of their corporate masters, with a few token cases of ‘citizen protection’ thrown in for media publicity.


“The most terrifying words in the English language are: I’m from the government and I’m here to help.” – Ronald Reagan

To see the absurdity of the regulation, have a think about this. Reg 28 is aimed at preventing people from being “reckless” with their pension money by not allowing them to invest over a certain limit offshore or in more volatile equity funds. At first glance, this may sound reasonable BUT when this same person retires at age 65, they can invest their full pension in any fund they wish, with no Reg 28 to “protect them”. So, take a person aged 35, they must be in regulated funds for 30 years and when they retire and need to be more cautious, they can invest in any aggressive fund they want to or, even worse, are advised to. Where is the sense in this ?

Greed & lack of Financial Education enable Scammers!

No amount of regulation will protect investors from scammers…just like regulation did ZERO to protect Steinhoff investors.

Scammers will still come & go in all sectors!

Crypto regulation will only serve as an attempt by the Money Powers to protect their ever shrinking pie; Crypto will ultimately & inevitably decimate them unless they embrace it…

When 99% of the general public with some money to invest don’t even understand trading the JSE, how on earth does anyone expect them to understand cryptocurrencies.

Easy meat for the predators out there.

An excellent interview and very reassuring to know that there is a man of principle, Mr Topham and his team, running the FSCA.

The very nature of crypto-so-called-currencies – removing the need for a trusted intermediary, makes it almost impossible to regulate effectively. While, in theory, this removes governments from the equation, the main beneficiaries have been criminals. Even with an honest exchange operator, you’re still gambling with your children’s inheritance due to the huge and unpredictable volatility.

End of comments.



Follow us:

Search Articles:
Click a Company: