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On Monday 11 November, Independent Online published a story warning about Karatbars as a complex multi level marketing scheme. This was based on an official Press Release by the Financial Sector Conduct Authority (FSCA) released earlier that morning.

The official Press Release obtained by SA Crypto reads as follows:

FSCA warns the public against Karatbars International GmbH

The Financial Sector Conduct Authority (FSCA) would like to warn the public not to deal with an entity called Karatbars International GmbH. Karatbars International GmbH is not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), to render any financial advice and intermediary services.

The FSCA was informed that Karatbars International GmbH has been offering investments to customers via WhatsApp. Karatbars International GmbH is based in Germany and is not authorised to render financial advice and intermediary services in South Africa.

The FSCA again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll free number (0800 110 443) or on www.fsca.co.za as to whether or not such institution or person is authorised to render financial services and the type of services which they are registered to perform.

Enquiries to the Financial Sector Conduct Authority can be made to the following:
Email address: Communications@fsca.co.za
Telephone: 0800 203 722

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SA Crypto has repeatedly warned our community of the dangers of complex Pyramid Schemes such as Karatbars, and this official statement only serves to reinforce our scepticism of companies such as these. Such schemes are simply tarnishing the image of one of the world’s most revolutionary inventions in Bitcoin and its underlying technology. They are hindering the progress of blockchain and stateless digital assets such as Bitcoin, and must be called out at every turn.

James Preston
James Preston is the Managing Editor of South Africa's first and largest news website for the blockchain industry: SA Crypto. He is a writer and media commentator who has been reporting on how the Tech industry will make the world a better place for 14 years, with a large following on South African radio. He is an early adopter of Bitcoin, and began reporting on its revolutionary capabilities in late 2014. Philosophical by nature, he is intrigued by how the world works, and in turn, how it can be bettered. James believes wholeheartedly that the world can become as close to perfect as we humans can imagine, but it will take a lot of effort (and time) to get there. He believes his life purpose is to inspire people to believe this, and find their place in helping humanity achieve it. James regularly does talks on emerging technology and its impact on society at Universities, global conferences, and events. To invite him to speak at your event, or comment for your media outlet, email info@sacrypto.co.za