Brandon Topham, a top South African regulator at the Financial Sector Conduct Authority (FSCA) wants more power to prosecute fraudsters and regulate dealing in cryptocurrencies after the collapse of a Bitcoin trader, alleged to be the country’s largest Ponzi scheme. The regulator states that “at the point something becomes a Ponzi scheme, we have lost our jurisdiction,”Bloomberg reports.
South Africa’s financial market regulator is seeking greater oversight of the cryptocurrency trading industry following the collapse of a bitcoin company alleged to have been the nation’s biggest Ponzi scheme.
Brandon Topham, head of enforcement at the Financial Sector Conduct Authority (FSCA), told Bloomberg Tuesday his agency is making new proposals to regulate cryptocurrencies in order to be able to prosecute fraudsters.
“At the point something becomes a Ponzi scheme, we have lost our jurisdiction,” Brandon Topham told Bloomberg. “We need the police and the prosecuting authority to work fast and put people in jail.”
The move comes after a recent FSCA investigation into Mirror Trading International (MTI), a bitcoin (BTC, -4.66%) trading club that had allegedly been operating illegally and lied to investors.
As reported by CoinDesk, MTI had claimed to be able to create profits of 10% per month by using bots to carry out high-frequency trading using client’s pooled bitcoin.
The firm was declared fraudulent by Texas state regulators in July last year, and the FSCA probe concluded MTI deliberately misled investors and operated a financial service without a license.
This article is sourced from:https://www.coindesk.com