South African Regulator Asks MTI Clients to Urgently Withdraw Funds

South African regulator, the Financial Sector Conduct Authority (FSCA), has initiated an investigation against the activities of Mirror Trading International for multiple operational concerns and urged its clients to “request refunds into their own accounts as soon as possible.”

The FSCA is concerned about the cryptocurrency trading company's claims of holding 2.9 billion rands (over $168.8 million) in its clients’ trading accounts as the regulator could not confirm the existence of the funds.

International Multilevel Marketing for FX and Crypto

MTI accepts Bitcoin from its clients. Then they pool the funds in one account on a Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term derivatives Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, and carry on high-frequency trading with sophisticated computer algorithms.

Currently, the platform does not hold any financial license from the market regulator. However, the FSCA pointed out that for the described services, the platform must have an FSP license.

The regulator also raised concerns on the 10 percent monthly returns promised by the platform, calling the claims 'far-fetched and unrealistic'.

“The FSCA also draws attention to the fact that FX Choice, the previous platform broker for MTI seems to have made public statements that gainsay the version of MTI in terms of trading volumes and Bot trading,” the regulatory warning stated.

Notably, FX Choice has blocked MTI's account over regulatory concern.

The South African regulator has already initiated an investigation on the platform, but MTI only co-operated 'partially'.

“We are reviewing the information as it becomes available and will involve the South African Police Service if the discrepancies are confirmed,” the warning added.

Similar to the South African financial watchdog, MTI also faced warnings in the US and Canada. The Texas State Securities Board issued a cease-and-desist order against MTI and a few others in July, for the forex and crypto-related international multilevel marketing scheme.