Apologetic FSCA walks back ‘damaging’ Ovex claims

The Financial Sector Conduct Authority (FSCA) has closed its investigation into Ovex, conceding in a statement issued on Friday that the company does not require a financial services licence currently.

This is after the financial watchdog, which is grappling with how to regulate the cryptocurrency sector, found itself with egg on its face after having to withdraw a statement issued on Thursday related to Cape Town-based Ovex.

In its latest brief statement on the matter, the FSCA says while it has previously warned the public that Ovex does not have a financial services licence, it has now received the necessary information to finalise its preliminary investigation.

“Based on the information provided by Ovex, we are satisfied that Ovex does not currently require a licence from the FSCA, as its business activities fall outside the current jurisdiction of the FSCA.”

The FSCA reiterated that its previous media release has been retracted. “The investigation is closed and we apologise for any inconvenience caused as a result of the warning,” its latest statement notes.

Ovex offers a crypto arbitrage service.

Jon Ovadia, Ovex’s CEO, took exception to the FSCA’s initial statement on his company’s business operations on Thursday, saying the warning was damaging to the business and issued without giving the company time to respond to questions sent earlier in the week. He anticipated that the FSCA would issue a full retraction.

• This article was originally published on Moneyweb and is used here with permission

Now read: Regulator issues, then withdraws, warning on Ovex crypto exchange