South Africa's Financial Sector Conduct Authority (FSCA) has warned the public to exercise caution when dealing with an entity called VIP Chairo Crypto. The FSCA suspects VIP Chairo Crypto of conducting an unauthorized financial services business and violating a number of financial industry laws, including operating as a bank.

The FSCA received information that VIP Chairo Crypto was running a suspected scam scheme on WhatsApp to accept deposits in the form of Bitcoin from members of a public offering. VIP Chairo Crypto offers these investors a 30% return in a month. The FSCA confirmed that VIP Chairo Crypto is not authorised to provide financial advice and intermediation services under the Financial Advice and Intermediation Services Act 2002 (FAIS Act 2002).

The MFSA can also confirm that the entity is not a registered bank or bank representative authorized under the Banks Act (Act No. 94 of 1990). The entity is not authorized to provide banking services such as accepting deposits from the public.

Members of the public should always check whether an institution or individual is registered with the MFSA to provide financial advice and intermediation services, and what kind of advice it should provide after registration. In some cases, registrars sign up for basic consulting services on low-risk products and then actually offer much more complex and risky services. The FSCA again reminds consumers who wish to engage in financial services with an institution or individual to check in advance with the FSCA on the toll-free number (0800 110 443) or on the website www.fsca.co.za to find out if the institution or individual is authorised to provide financial services.