FSCA Warns the Public Against AfriInvest and MutualWealth

South Africa’s Financial Sector Conduct Authority (FSCA) has issued a public warning against two unlicensed crypto firms, AfriInvest and MutualWealth.

🇿🇦REGULATION | South African Regulator, FSCA, Warns Public Against Crypto Schemes, AfriInvest and MutualWealth

The warning follows reports that AfriInvest and MutualWealth have been guaranteeing returns of up to $542 (R10,000) per day.

The firms claim to leverage artificial… pic.twitter.com/vmLHgXZ0gt

— BitKE (@BitcoinKE) April 4, 2025

According to FSCA, AfriInvest and MutualWealth operate unregulated crypto schemes that solicit funds from the public for unrealistic returns.

The Authority added that both unlicensed crypto firms offer to trade cryptocurrencies on behalf of investors, leveraging artificial intelligence (AI) while promising a daily return of R10,000 ($533).

In addition, AfriInvest and MutualWealth use the names of Steve Hofmeyr, a South African musician, Kallie Kriel, the CEO of AfriForum, and Maroela Media’s brand to attract people to their schemes.

However, Steve Hofmeyer, Kallie Kriel, and Maroela Media have all denied any association with the crypto firms.

“While the FSCA does not comment on the specifics of AfriInvest or MutualWealth’s business, it must be noted that these entities are not authorised in terms of any financial sector law to provide financial services to the public in South Africa,”

the FSCA said.

FSCA Warns Against Crypto Rogues on Social Media

Furthermore, FSCA advised the public not to have any dealings, whether to seek financial advice, assistance, or investment offers, with individuals or entities not authorized by the authority.

Additionally, any financial service provider claiming to have been authorized by FSCA must include its authorization status in its documentation for reference purposes.

Also, the public should be wary of crypto trading or investment on social media platforms, as many rogues are ready to swindle people’s money on these platforms.

FSCA also highlighted that it is highly recommended for all investors to confirm what categories of financial advice or business an individual or a company is licensed to provide.

Also, the FSP number used by any financial service provider must correspond with the FSP’s name on the FSCA database. The article also mentioned ways to confirm the status and FSP number of all financial service providers in South Africa.

Similarly, in 2024, the FSCA investigated crypto firms operating without licenses in the country.

The report stated that any company found guilty could face a fine of R10 million or even a criminal conviction with up to 10 years of imprisonment.

FSCA required all crypto-assets service providers (CASPs) to be duly registered under its supervision. Any unlawful CASPs will be charged and eventually stopped from operating in the country.

Africa Pushes For More Crypto Adoption But Calls For a Regulated Environment

As more African regions adopt crypto, even in their day-to-day transactions, there should be more regulated approaches to crypto use.

Earlier, Coinwaft reported that South Africa recorded 584 merchant locations in 2025 where crypto was accepted for payment.

🌍 JUST IN: South Africa leads Africa’s crypto payment adoption in 2025, according to a new report. pic.twitter.com/1Oo8fcpcZu

— Coinwaft (@coinwaft) April 3, 2025

Likewise, it was reported that Africa and other countries worldwide are pushing for regulations that will regulate the crypto space to combat money laundering and terrorism funding.