Financial Services Conduct Authority (FSCA) of South Africa have put out a Press Statement notifying investors of an on-going investigation of Mirror Trading International (MTI).
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According to the FSCA release, “MTI is a trading platform that accepts clients’ funds in the form of Bitcoin, pool the funds into one trading account on a forex derivative trading platform, and conduct high frequency trading through the utilisation of a Bot”.
The FSCA is of the view that the current business model of MTI who claims to have R2.9 billion (at current conversion rates) in clients’ funds in trading accounts is required to have a Financial Service Provider (FSP) licence.
The FSCA has also said that it is unable to conclusively confirm that MTI has the R2.9 billion (at current conversion rates) in clients’ funds in trading accounts it claims to have.
Moreover, FX Choice the previous platform broker of MTI has blocked the account of MTI due to compliance concerns.
The FSCA recommends that the platform users withdraw their funds from the provider while the investigation continues.