FSCA Issues A Crypto Health Warning

FSCA Press Release 04 February 2021
Crypto health warning

The FSCA is receiving a large number of complaints from South African investors who have lost their savings through investing in a crypto-related investment that they did not understand, or a scam packaged as a crypto investment promising unrealistic high returns.

Cryptoassets, or cryptocurrencies as they are commonly called, are digital representations of value that are not issued by a central bank.

Some of the more wellknown cryptoassets include Bitcoin (BTC) and Ethereum (ETH). Cryptoassets are traded, transferred and stored electronically. They have been used for payments, investments and capital-raising.

Crypto-related investments are not regulated by the FSCA or any other body in South Africa. As a result, if something goes wrong, you’re unlikely to get your money back and will have no recourse against anyone.

As the popularity of cryptoassets increases, we remind consumers to understand what they are investing in and the financial risks involved:

• Crypto investment firms may be overstating potential pay-outs or understating the risks.

• Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money, which mean that you should be prepared to lose all of your money.

• There is no guarantee that crypto assets could be converted back into cash, putting consumers at the mercy of supply and demand in the market.

• The price of crypto assets is dictated by the underlying mood or sentiment of the general public with no underlying basis for value determination.

The prices are driven by the worldwide sentiment which is driven by persons who have an interest in the value of the crypto asset being driven up.

Many concepts used by multi-level marketers and Ponzi scheme operators are being applied to make potential investor afraid of being left out and perpetrating the cycle of new investors acquiring the crypto asset thus driving the price up.

In the end there is no guarantee that when you wish to sell, the sentiment will still exist and that buyers will even exist or be available to acquire the crypto asset from you.

• There is often high price volatility placing even greater financial risk to consumers.

The FSCA therefore cautions potential investors of the following:

• Regardless of the level of risk which investors are prepared to accept, investors are urged to ensure that crypto assets, if purchased, should only make up a small proportion of their investment portfolio.

• The risk of losing all of the money invested in schemes promising high returns means that prospective investors should, before investing, obtain proper advice regarding the overall suitability of such high-risk product in your investment portfolio and the impact on it should it fail.

• You are urged to invest with open eyes as to the high risks involved,
understanding that these type of investments are not appropriate for the vast majority of the South African population and that more appropriate and balanced investment products are available and offered by licensed Financial Service Providers regulated by the FSCA;

• Do not be pressured to go with the flow and do not be afraid of being left out of the “next big thing”.

• There are no safe “quick rich” schemes in the world. When it comes to your retirement, take a prudent and responsible approach and never put a large percentage of your wealth into any investment product.

Diversification of risk is the most important principle for long term wealth creation and preservation.

The high risks already inherent in crypto assets is further being compounded by scam activity, as well as unregulated firms targeting consumers with marketing material that highlights the rewards, but not the potential downside, of investing in crypto assets.

It is for this reason that the FSCA is working at finding measures to regulate certain aspects and players in the crypto asset space. These measures will be rolled out during the coming months and we are working with other members of the Intergovernmental Fintech Working Group (IFWG) to better understand and regulate where appropriate crypto assets in South Africa.

Retirement fund trustees must also remain vigilant in their fiduciary duties before mandating investment managers to expose their fund assets to risks associated with crypto assets. The FSCA currently discourages such investments by retirement funds until regulation has been finalised to safeguard investors.

The FSCA reminds you of the old saying: “if an investment looks too good to be true, it usually is”.

Enquiries: Financial Sector Conduct Authority
Email address:
Telephone: 012 422 2842

Bitcoin Price

The Bitcoin Shakeout Jan 2021 Trading Update with Willy Woo

On-chain analyst and the co-founder of Hypersheet, Willy Woo discusses the run-up to $42,000, what the on-chain data indicates, price targets for Bitcoin and how to call the top.


The Bitcoin Scammer Who Just Won’t Quit

There are many scams in social media offering Bitcoin mining or trading schemes. Some are very blatant like this one and some more sophisticated like the MTI one.

If you’re interested in investing in Bitcoin, be careful who you work with!

One of the scammers uses Erik Voorhees’s twitter profile to scam others.

He wanted people to invest in his “mining operation”.

If you haven’t yet bought bitcoin, you can do so here or:

Bitcoin Price

This Is How The Bitcoin Price Can Reach $1 Million

Anthony Pompliano, author of the Pomp Letter, discusses the recent price action of Bitcoin with Daniela Cambone.

Earlier this week, the cryptocurrency slipped 10% in two days to fall below the $32,000 level for the first time since Jan. 11.

The total market value of all cryptocurrencies shed more than $100 billion in the span of 48 hours. But he responds, “relax and zoom out,” adding he rarely checks the price.

Later, Pompliano shares his forecast and why $1 million dollar Bitcoin is not out of the question.

He also weighs in on the recent regulatory bodies cracking down on Bitcoin and the likelihood of central banks adding Bitcoin to their coffers.

Click here to find more bitcoin trading resources.

Bitcoin Exchange

Paybis Affiliate Program

Buy Bitcoin & Other Crypto With Your Credit Card

With Paybis you can earn money from helping people buy bitcoin with their credit or debit cards.

Seeing that we’re in lockdown, I’m hoping to build a little business where I teach other people who are interested in earning money from bitcoin affiliate programs.

If you’d like to join in, please click here to open an account and then use the contact form elsewhere on this site to send me a message and we can find a way to work together earning sats from Paybis.

Bitcoin Trading

How To Buy Bitcoin

These days it’s really easy to buy Bitcoin in South Africa. We are so spoilt for choice that there is no reason why anyone doesn’t have at least R10 worth of the most popular cryptocurrency. In this article I’m going to discuss the various ways that you can get your hands on your first Bitcoin.

There are many South African based exchanges and some well established brands from abroad are making their presence felt in this country but if you want to buy more than R20,000 of Bitcoin, then listen up because buying on an exchange is not the best place to do so and this is what you should do instead!

Buy your Bitcoin from BitVice.

When you buy from BitVice, you get your Bitcoin at a discount than if you bought it on any of the exchanges below (they buy on OTC desks in bulk and get a better deal), and your Bitcoin is sent directly to a wallet address that’s under your control (I will help you set-up this wallet if you don’t already know how)

Instructions on how to open a BitVice account follow.

How To Open An Account

With BitVice

Because I’m an authorised Adviser with BitVice I can help you open an account on their platform. All you need to do is send me a WhatsApp to (082)561-4455 and introduce yourself to me. I will then request the info that’s needed.

The way that BitVice works is that after you’re been successfully FICAed on their platform, you will make an EFT deposit into their FNB bank account. The minimum amount is R20,000 (if you are buying less bitcoin than this, use the exchanges below)

They then do a single OTC transaction a day with all of the funds that they’ve received for the day and then they send your portion of bitcoin bought for the day directly to the address you specify in your account settings, they never hold your bitcoin and this is much safer (you don’t have to worry about the exchange disappearing, which has happened).

I will help you set up one of the self-hosted wallets to keep your wallet safe and teach you best practices to keep your Bitcoin secure.

Buying on Exchange

Below you will find links to my favourite exchanges that I use regularly. After you use the links provided to sign up for an account on your favourite platform you need to verify your identity via the KYC (Know Your Client) process they have, you’re then you can fund your account with South African Rand.

Once you have bought your bitcoin on the exchange, you have the choice of keeping your bitcoins in the exchange or transferring them to your personal offline wallet or doing whatever else you want to do.

Here are the exchanges you can buy bitcoin from.


VALR is like the Bittrex of South Africa. In fact, they may still have a partnership with that company to get liquidity for their more exotic coins. They have the most extensive collections of altcoins on their platform for you to buy.

This is great if you’d like to speculate on the DeFi market that really took off in 2020 or buy that obscure coin that you just found out about.

They’re cheap, the charge the least transaction fees and they pay YOU a maker fee if you add liquidity to the platform by placing limit orders.

The CEO, COO and social media team are very active on Twitter


The easiest way to buy bitcoin is from the exchanges and Luno is one of the most liquid exchanges in South Africa.

Open an account, get verified, make a deposit with one of the big South African banks and you’re ready to buy bitcoin on their exchange.

After you sign up and buy or sell R500.00 or more (exchange excluded), you will receive R10.00 worth of Bitcoin.

Click here to buy bitcoin from Luno.


LocalBitcoins is not an exchange.

Its a website that puts you in touch with other people in the similar area who want to buy or sell bitcoin. I haven’t used it before and the price is sometimes at a premium to the other exchanges or it could even be cheaper (if you find a good deal)

Click here to buy bitcoin with LocalBitcoins.


Binance is a very interesting company to buy bitcoin from. They make it easy for South Africans to buy with a credit or debit card and the process is normally instant.

If the other options above take too long, as regulation means they have to KYC (Know Your Client) and AML (Anti-Money Laundering) process checks on you before allowing you to trade, then try Binance.


Coindirect is a new entrant into the market and is a unique place to buy and sell not only bitcoin but other cryptocurrencies as well (up to 40 coins).

Not only can you buy coins on the exchange, but you can buy or sell Over The Counter (OTC) so you can transact large amounts without impacting the price on exchange.


As the name suggests, AltcoinTrader offers the most amount of altcoins from all the exchanges that we’re investigating here. I haven’t used them yet, so I can’t say how good they are.

Click here to buy bitcoin with AltcoinTrader.


Huobi recently made a big deal about entering into the African market and even had a very complicated giveaway to attract more clients.

Very few of the people who saw my content could figure out how to enter, so I invested the rest of the funds I was given into bitcoin and giving out to those who can follow directions sufficiently to enter correctly. for all the details.


Remitano seems to be a African based peer-to-peer bitcoin exchange, similar to LocalBitcoins.

I haven’t investigated or used them at all. All that I know is that they pay affiliates 40% commission and a further 10% on a second tier.

Other ways to buy Bitcoin in South Africa

I don’t recommend you use these ways, especially if you’re a beginner, but they may be some times that you need to use another exchange or service to buy your bitcoin.


Spectrocoin – This is the way that I buy bitcoin from the payments that forex brokers make into my Skrill account. I pay a lot in fees, but since I don’t need to use the money immediately and am just hodling my bitcoin for the long term (unless I need the cash, then I simply sell on a local exchange.

You can also get a prepaid debit card with them, but I’m not sure how long this is going to last with many other services stopping the service outside of Europe.


A few days ago, I also learned that Skrill also allows you to buy and sell various cryptocurrencies on their platform. I don’t see how one can withdraw the bitcoin you buy to an external wallet, so if you do buy from them, you’ll have to wait until it increases in value before you can exchange back to fiat and then withdraw.

Click here to buy crypto with Skrill.

Virwox – Buy bitcoin using PayPal. Once again, I haven’t used it yet, but theoretically you could use your PayPal funds to convert to their own currency from PayPal before converting to BTC.

That’s it for now. There’s also Coinbase, but I don’t recommend them as they’ve had a few phishing hacks and it seems too easy to bypass their sms based 2FA system. If I come across other ways to buy bitcoins from South Africa, I’ll update this post.

If you’ve found somewhere else to buy, please let me know in the comments and please like and share this post.