Serious blow to controversial South African trading platform

The Financial Sector Conduct Authority (FSCA) has withdrawn the licence of Banxso, a South African trading platform for forex, stocks, commodities, cryptocurrencies and indices.

The FSCA provisionally withdrew Banxso’s licence on 15 October 2024, following preliminary findings made during an investigation.

Banxso was allowed to respond to the provisional withdrawal notice and provide reasons to the FSCA as to why the provisional withdrawal should be lifted.

The FSCA considered the preliminary findings and Banxso’s submissions in respect of the provisional withdrawal and has decided to withdraw the licence of Banxso.

The FSCA said Banxso materially contravened various financial sector laws and that it no longer meets the requirements to be a financial services provider.

It found that Banxso misappropriated client funds, provided false and misleading information to clients and the FSCA, and did not act in the best interests of clients.

The FSCA has also provisionally withdrawn Afrimarkets Capital’s licence. Afrimarkets and Banxso are linked through common directorships and key persons.

The FSCA stated that Afrimarkets and Banxso conducted their financial services business in a very similar manner.

“The FSCA will update members of the public in due course regarding the investigation and its decisions in this matter,” the authority said.

Banxso released a press statement, saying it noted the publication of the FSCA press release about the final withdrawal of its financial services provider licence.

Banxso stated that it disputes the conclusions reflected by the FSCA and will exercise its full rights of recourse under the Financial Sector Regulation Act.

These rights include the option to apply for reconsideration of the decision before the Financial Services Tribunal.

The company is also undertaking a comprehensive legal review of the procedural and factual aspects underpinning the FSCA’s decision.

“We are disappointed by the FSCA’s decision, which in our view does not reflect the substantial engagements with and representations to the FSCA,” it said.

The company added that it also made material improvements to its systems and compliance frameworks.

“Banxso remains committed to the highest standards of client care and regulatory integrity and will engage the available legal avenues to ventilate and defend its position fully,” it said.

“We will continue to rely on our legal team, including senior counsel and regulatory experts, to challenge the FSCA’s decision through the appropriate statutory channels.”

Banxso stated that it remained fully committed to transparency and stakeholder engagement as the matter progresses.

Afrimarkets statement

Earlier this week, Afrimarkets was notified by its banking partners that certain of its accounts have been temporarily restricted, pursuant to what is presently believed to be a directive issued under section 34 of the Financial Intelligence Centre Act, 38 of 2001.

We are advised that such restrictions are only valid for 10 days, pending further developments. Despite this, no formal notice has been received, articulating the basis of this intervention.

As of the date of this release, 4 July 2025, Afrimarkets has also been informed that its licence has been provisionally withdrawn by the Financial Sector Conduct Authority (FSCA), pending the finalisation of its investigation.

Notwithstanding, however, to date, no formal or final findings have been made against Afrimarkets, and we are actively engaging with the relevant regulators about their respective investigative processes. Afrimarkets has not been provided with any indication that these events are interlinked.

While we are still seeking clarity on these invasive measures, we are engaging senior legal counsel to consider all available remedies to protect the interests of our clients and stakeholders.

Afrimarkets has consistently sought to uphold its regulatory obligations and remains committed to cooperating with the authorities in the spirit of transparency and good faith.

We assure our clients that, despite the temporary suspension of trading operations resulting from these issues, all client funds remain fully safeguarded. We are taking immediate steps to address the situation and to restore normal operations with urgency.

We are also aware of public commentary suggesting a potential association between Afrimarkets and Banxso. For the avoidance of doubt, whilst there may be certain overlapping stakeholders, Afrimarkets and Banxso are, and have always been, distinct legal and operational entities. There are no shared platforms, client accounts, or regulatory operations between the two.

Afrimarkets remains committed to the highest standards of compliance, integrity, and client service. We will continue to monitor the situation and issue updates as new information becomes available.