Banxso and Afrimarkets to challenge FSCA findings at the Financial Services Tribunal
Banxso and Afrimarkets, two leading fintech firms in Cape Town, are navigating significant regulatory challenges as the FSCA withdraws their licences.
Image: FSCA
Two prominent Cape Town-based fintech companies, Banxso (Pty) Ltd and Afrimarkets (Pty) Ltd, have issued responses following recent regulatory and banking developments that have impacted their operations.
Banxso confirmed the final withdrawal of its financial services provider licence by the Financial Sector Conduct Authority (FSCA), as per a notice issued on 4 July 2025.
The FSCA stated that Banxso had contravened various financial sector laws and no longer met the requirements to be a fit and proper financial services provider.
Key findings included allegations of misappropriation of client funds, providing false or misleading information to both clients and the FSCA, and failing to act in clients’ best interests.
Improvements were made!
In response, the company has strongly contested the FSCA’s findings and announced its intention to challenge the decision through the Financial Services Tribunal and other statutory legal avenues.
Banxso emphasised that it has significantly enhanced its systems and compliance frameworks and will pursue a legal strategy grounded in both procedural fairness and factual evidence.
“We are disappointed by the FSCA’s decision, which in our view does not reflect the substantial engagements and improvements made. Banxso remains committed to the highest standards of client care and regulatory integrity,” according to Sean Newman, the company's spokesperson.
Afrimarkets wants clarity
Meanwhile, Afrimarkets has faced temporary banking restrictions believed to be the result of a directive issued under section 34 of the Financial Intelligence Centre Act.
The FSCA said that the provisional withdrawal is based on the findings of their preliminary investigation regarding the activities of Afrimarkets and its possible association with deepfake advertisements.
The FSCA is also concerned about the apparent aggressive and pressurised sales techniques Afrimarkets agents use when selling financial products to clients.
These restrictions, which affect certain accounts, are understood to be limited to a 10-day period. Simultaneously, the FSCA has provisionally withdrawn Afrimarkets’ licence pending the outcome of an ongoing investigation.
Afrimarkets said it had received no formal findings or specific allegations and is actively engaging with regulators.
“We are seeking clarity on these measures and are working closely with senior legal counsel to consider all available remedies to protect our clients and stakeholders,” Newman said, adding that all client funds remain secure and steps are being taken to urgently resume operations.
In light of speculation regarding a possible connection between the two firms, Afrimarkets categorically clarified that, while some stakeholders may overlap, Banxso and Afrimarkets are distinct legal and operational entities with no shared platforms, client accounts, or regulatory systems.
The two companies have reiterated their commitment to transparency, regulatory compliance, and the safeguarding of client interests.
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