South African cryptocurrency market maker OVEX has canceled and removed FTX as a juristic representative, cutting off the international exchange’s access to its local Financial Service Provider (FSP) license.
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This follows a run on the company by panicked customers trying to withdraw funds. The company says it was forced to suspend all withdrawals.
In a statement, OVEX says it has withdrawn FTX’s authority to market offshore derivatives products in South Africa, effective from 9 November 2022.
FTX was offering derivative products such as bitcoin futures in SA until OVEX terminated the relationship.
“FTX’s marketing activities in South Africa had in the past been regularised through its appointment as juristic representative of Ovex Fsp (Pty) Ltd, FSP no. 50776,” says the statement from OVEX.
“Ovex Fsp (Pty) Ltd confirms the cancellation and removal of FTX as juristic representative. The public is cautioned from doing further business with FTX, as FTX is not permitted to market its offshore derivatives products in South Africa, at this time.”
On Wednesday OVEX CEO Jon Ovadia said on the Moneyweb Crypto podcast that FTX owned 8% of the company, and that no client funds were at risk as FTX now embarks on bankruptcy proceedings.