Crypto in Africa: Launch of rand to BTC trading and fraud alerts hits SA

Crypto in Africa: Launch of rand to BTC trading and fraud alerts hits SA

Recently, a crypto exchange in South Africa launched a rand to SegWitCoin (BTC) platform to promote cryptocurrency trading. However, it is still facing challenges from fraud cases despite regulatory efforts to promote security, safety, and transparency in the industry.

VALR launches rand to SegWitCoin trading

VALR, a South Africa based crypto exchange, recently launched a rand to BTC exchange on its platform, enabling its clients to trade BTC for rand on from June 4. Farzam Ehsani, the CEO of VALR said that about an hour into the launch, there was millions of rand worth of trades. In addition, he highlighted that the platform offered the most affordable fees on the market. These lower fees attracted a larger consumer population. The CEO said:

“We are very excited to offer our customers the ability to buy SegWitCoin with Rands with the best fees in the market by far. We take pride in the fact that in addition to providing the widest choice of cryptocurrencies in South Africa, we also have the lowest fees in the market for ZAR trading.

“The price will go up and down based on the whims of people, but if you understand the technology and the impact this asset class can have on the world, you take a different perspective.”

Although South Africans constitute a large share of the customers on this platform, VALR will still serve customers from across the globe. However, customers from North Korea and the United states are exempt because of their regulatory environment.

During the sign-up process, potential clients are asked to provide their name, surname, address, and a password. In addition, they will need an image from a relevant identification document (an ID, driver’s license, or passport) to verify the process.

VALR’s platform uses artificial intelligence and machine learning to streamline the ID verification process. Users can enjoy automated trading thanks to the platform’s advanced application programming interface (API).

The 5-minute process will determine whether the client can trade on the platform. All the information is compared and if it matches, the client can officially trade. According to company statistics, there are new sign-ups every minute.

Fraud alert hits South Africa

The Citizen, a South African media outlet, revealed the existence of a fraud company operating from Ladysmith, in Kwa-Zulu Natal province. Although the town is relatively small holding a population of about 60,000 people, the fraudsters are taking in R2 million ($135,000) on a daily basis.

The South African virtual investment scheme confirms that you do not need a well-known brand name to attract thousands of dollars from individuals. The company, operated by Sphelele ‘Sgumza’ Mbatha, promises to make a 100% return on investment in just 15 working days (about two weeks).

The initial minimum investment amount for a company to join the investment scheme was 100R ($6.7). After gaining popularity in the market, it started to recognize amounts more than 5000R ($337). In a conference, Sgumza highlighted that he was increasing revenues for his shareholders by purchasing and selling BTC while charging 10% as administration fees.

While the cryptocurrency line of business seems lucrative, the guarantee of 100% ROI in less than three weeks is next to impossible. The prices of cryptocurrencies can change in any direction, potentially resulting in large losses. Even with an increase in prices, it is rare to score a 100% gain in the cryptocurrency market in less than three weeks.

Sgumza seems to be enriching himself. He has turned into a native star in the area moving around with police escort. Despite being called for interviews, he has declined attending them with the claim that he needs to be paid before any attendance. With the ongoing scandal, other cryptocurrency exchanges have chosen to disassociate from the investment program.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.