South Africa regulator wants mirror Trading International to pay millions in fines for breaching financial sector legislation

The South African regulator, the Financial Sector Conduct Office (FSCA), has told key figures behind Mirror Trading International (MTI) that it plans to fine a now-defunct crypto investment company $ 7 million.

Violation of financial sector legislation
According to a July 6 letter sent to the CEO and other members of the management team, the regulator said the proposal to fine the company included MTI’s involvement in activities it said “violated Financial Sector Law.”

The revelation of the secret letter and the information leaked to South African media came just days after the court made the final decision to abolish MTI. Also, as previously reported, the news comes months before the court will hear testimony from liquidators who plan to petition MTI to announce the Ponzi scheme.

Meanwhile, the FSCA letter also explains how MTI executives-CEO Johann Steinberg and especially Sheri Marx — used misinformation to pursue a Ponzi scheme before finally leaving in December 2020.Dec. As of April 2019, MTI reveals several provisions of the South African financial sector Act which are alleged to be in violation.

For example, the letter says the first breach of MTI occurred when” derivatives trading on the basis of currency pairs was conducted through a platform broker called FX Choice.”With respect to this trade, the FSCA states that MTI” does not have a license for financial service providers under Section 8 of the financial advisory and Mediation Services Act 37 2002 (FAIS Act).””The manager added:

As it was made unlicensed, MTI was designated as part of Section 111 of the Financial Sector Regulation Act 9 (Fsr Act) of 2017.he also violated his department.

Dec October August 2019 and October 2020 are the same division, the regulator claims

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