The FSCA has confirmed that it has suspended the exchange license of ZAR X, due to its non-compliance with FMA regulations related to liquidity and capital adequacy requirements.
The Financial Sector Conduct Authority (FSCA) issued a statement on Monday, 23 August 2021, announcing that it has suspended the exchange license of ZAR X (PTY) LTD. The suspension resulted from ZAR X’s non-compliance with section 8(1)(a) of the Financial Markets Act (FMA), read with Regulation 8 and 43(2) of the FMA regulations, related to the liquidity and capital adequacy requirements of an exchange.
The suspension of ZAR X’s exchange license is said to have taken effect from Friday, 20 August 2021, with conditions imposed in terms of section 60(4) of the FMA. According to the statement, ZAR X is immediately required to inform all affected persons and all its stakeholders of the suspension of its license, and to provide the FSCA with weekly progress reports regarding the matters referred to in the notice.
FSCA’s Commissioner, Unathi Kamlana stated, “We do not take this regulatory action lightly… It is a necessary step to safeguard market integrity and the interest of issuers and the broader investing public.” The FSCA will, however, be allowing ZAR X to operate in order for transactions in progress to be finalised, but it may not allow further trading or accept new issuers.
