Afrimarkets Denies Wrongdoing as Regulator Shuts It Down

South Africa’s online trading firm Afrimarkets was recently stripped of its license, according to a statement published yesterday, December 9, by the Financial Sector Conduct Authority (FSCA).

The regulator’s press release says that it has decided to withdraw Afrimarkets Capital’s FSP license. Initially, the regulator provisionally withdrew the license of Afrimarkets on July 4, 2025, based on preliminary findings made during an investigation into the company’s conduct.

Afrimarkets was then afforded an opportunity to make representations on the FSCA’s intended decision to make the provisional withdrawal final.

The regulator said: “The FSCA is of the view that Afrimarkets materially contravened various financial sector laws and no longer meets the fit and proper requirements to operate as a financial services provider. The investigation found, inter alia, that Afrimarkets misappropriated client funds, provided advice to clients whilst it was not authorised to do so, provided false and/or misleading information to clients and to the FSCA, promised clients unrealistic returns, and failed to act in the best interests of its clients.“

As mentioned, the FSCA first moved against the firm on July 4, when it started a campaign to address misconduct in the retail trading sector.

Afrimarkets Pushes Back on Misconduct Claims

Following the announcement, Afrimarkets responded by pushing back on misconduct allegations. The company has published an announcement on its platform, saying that it publicly rejects the core accusations, insisting that the withdrawal and banking restrictions formed part of an ongoing regulatory process, and did not amount to final or adverse findings at that stage.

Previously, the FSA has highlighted links between Afrimarkets and another trading company, Banxso, pointing to common directorships and similar business models between the two.

The firm said: “We welcome the scrutiny. We stand by our position. We vehemently deny any allegations of financial misappropriation, maladministration of client accounts, or any related impropriety.”

It also argued that the provisional withdrawal of its license and suspension of its bank accounts form part of an ongoing regulatory process, explaining also that the company is not allowed to conduct new business, but that it is working diligently to engage the relevant authorities and financial institutions to speed up the resolution of this matter.

Despite the full withdrawal, it continues to categorically deny all accusations of financial misappropriation, maladministration of client accounts, or any related impropriety, insisting that it remains committed to regulatory compliance and cooperation with authorities while working with banks and regulators on resolving the issue.