Public Disclosure on Cryptocurrency for Clients of AFRIDAX in South Africa
I. Introduction
At AFRIDAX, we understand that cryptocurrencies have gained significant attention and interest from our clients in South
Africa and around the world. Cryptocurrencies offer new opportunities and challenges in the financial landscape. This
public disclosure aims to provide our clients with information and guidance regarding cryptocurrencies and their use
within our services.
II. What Are Cryptocurrencies?
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized
networks, such as blockchain technology, which ensures transparency and immutability of transactions. Cryptocurrencies
are not issued or regulated by any central authority, like a government or central bank. Instead, they rely on a
distributed ledger system to validate and record transactions.
III. Cryptocurrency Risks
While cryptocurrencies offer unique advantages, they also come with specific risks that clients should be aware of:
1. Volatility: Cryptocurrency prices can be extremely volatile, leading to significant fluctuations in the value of
holdings over short periods. Prices can be influenced by various factors, including market sentiment, news events,
and regulatory changes.
2. Security: Safeguarding cryptocurrency holdings is crucial. Cryptocurrency theft, hacking, and fraud are prevalent in
the digital asset space. Clients must take appropriate security measures, such as using secure wallets and
practicing good cybersecurity hygiene.
3. Regulatory Risks: Cryptocurrency regulations vary by country and can change rapidly. Clients must be aware of the
regulatory environment in South Africa and any changes that may affect their cryptocurrency transactions.
4. Lack of Consumer Protections: Unlike traditional financial institutions, cryptocurrency transactions may not offer
the same level of consumer protections. Clients must exercise caution and due diligence when engaging in
cryptocurrency activities.
IV. Our Approach to Cryptocurrencies
AFRIDAX recognizes the growing interest in cryptocurrencies and aims to provide a safe and compliant environment for
clients who wish to engage in cryptocurrency-related activities:
1. Cryptocurrency Services: We offer services that allow clients to buy, sell, and hold cryptocurrencies in accordance
with applicable South African regulations.
2. Security Measures: We implement robust security measures to protect clients' cryptocurrency holdings and
transactions. These measures include encryption, multi-factor authentication, and regular security audits.
3. Compliance: We adhere to all relevant South African laws and regulations governing cryptocurrency transactions,
anti-money laundering (AML) requirements, and know-your-customer (KYC) procedures.
V. Client Responsibilities
While we strive to provide a secure and compliant environment, clients who choose to engage in cryptocurrency activities
bear certain responsibilities:
1. Education: Clients should educate themselves about cryptocurrencies, including how they work, potential risks, and
best practices for safe storage and usage.
2. Security: Clients must take proactive steps to secure their cryptocurrency holdings, including using secure wallets,
enabling strong authentication methods, and being cautious of phishing attempts and fraudulent schemes.
3. Regulatory Compliance: Clients must comply with all South African cryptocurrency regulations and report any
suspicious activities as required by law.
VI. Conclusion
AFRIDAX is committed to supporting our clients' financial goals while prioritizing their security and compliance with
South African regulations regarding cryptocurrencies. We aim to provide a platform where clients can explore the
opportunities presented by cryptocurrencies while being informed and aware of the associated risks. We encourage clients
to reach out to our support team for any inquiries or assistance related to cryptocurrency transactions.
