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South Africa’s Financial Sector Conduct Authority is once again raising the alarm for cryptocurrency scams.

In a press release Released on Thursday, the FSCA has instructed the public to do their own due diligence before investing in a crypto-related project.

According to the FSCA, the risky nature of the crypto investment space is further exacerbated by the multitude of extensive cryptocurrency scams in the country.

Indeed, as previously reported by Cointelegraph, the wave of crypto scams is in South Africa putting pressure on the authorities towards tighter regulatory control over the industry.

In January, interim liquidators of an alleged South African Bitcoin scam called for a comprehensive mandate to investigate the suspected multi-level marketing plan. In August 2020, the FSCA warned investors to avoid Mirror Trading International, the company at the heart of the fraud investigation.

Commenting on the apparent herd mentality that this crypto scam is targeting, the FSCA stated in its communiqué, “Don’t be pressured to go with the flow and don’t be afraid to get out of the next big thing.” to be left. “

The FSCA also revealed it was in the process of regulating some areas of the crypto space in partnership with the country’s Intergovernmental Fintech Working Group. In December 2020, the FSCA already classified cryptos as financial products.

Meanwhile, the country’s tax authorities are tightening it up crypto tax compliance monitoring activities. Reports indicate that the South African Revenue Service, or SARS, has sent audit requests to taxpayers with cryptocurrency-related queries attached.

Like the infamous “crypto questionIntroduced by the US Internal Revenue Service, the SARS crypto query looks up information about the purpose for which investors bought virtual currencies, as well as trading data from stock exchanges.

The move likely indicates that SARS plans to prosecute crypto investors who either fail to declare their crypto transactions or misrepresent the value of their virtual currency-related activities.