SA’s first Companies’ Act regulated cryptocurrency investment

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Jaltech launched SA’s first Companies’ Act regulated cryptocurrency investment this past month. The investment offers South Africans exposure to an asset class which has demonstrated unprecedented growth over the past 5 years.

Jaltech’s approach is to offer investors exposure to cryptocurrency in a regulated investment which would put to bed investors’ fears around cryptocurrency investments in the South African market, which have resulted in billions of Rands of investors’ funds being stolen.

Although cryptocurrency investments are not explicitly regulated in South Africa, Jaltech has structured the investment through a public offer (through a CIPC approved prospectus) which is regulated by the Companies Act, and is voluntarily signed up with the Finance Intelligence Centre and complying with the FIC Act. The advantage of investors using a public (but unlisted) company is that it places higher levels of transparency, governance and accountability requirements on the Company. Investors can draw further peace of mind from the fact that BDO has been appointed as the company’s auditors.

The sale of Jaltech’s cryptocurrency notes falls within the scope of the Financial Sector Conduct Authority (FSCA) as the issuing instrument is a debenture which is classified as a “financial product” in accordance with the FAIS Act. This will allow investors the opportunity to seek financial advice from their trusted financial advisor and afford financial advisors with the relevant FAIS licence to advise clients on the investment provided they have a working knowledge of cryptocurrencies.

For investors who are looking for exposure to cryptocurrencies, Jaltech’s cryptocurrency notes offers investors the opportunity to obtain exposure to Bitcoin, Ether or to the Jaltech Large Cap Index which is tailored for investors who are looking for diversification across multiple cryptocurrencies/tokens.

For more information on Jaltech’s cryptocurrency investment, click here.

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