Banxso acquires licenses in Australia, Vanuatu, Mauritius after ‘deepfake’ scandal

Rick Steves

The acquisition of new regulatory licenses in Australia, Vanuatu, and Mauritius is set to bolster Banxso’s standing in the FX and CFD market during a period marked by the rise of sophisticated frauds leveraging deepfake technology.

Banxso, a prominent FX and CFD broker, has embarked on a strategic path toward regulatory compliance and global expansion by securing new licenses in Australia, Vanuatu, and Mauritius.

These achievements signal a turning point for the broker, which has recently faced challenges related to Elon Musk deepfake ads that led to client onboarding of scam victims in South Africa without Banxso’s knowledge.

The acquisition of a license from the Australian Securities and Investments Commission (ASIC) is pivotal for Banxso, as the ASIC license is recognized for its rigorous regulatory framework, designed to ensure the safety and fairness of financial services for consumers.

Further expanding its global footprint, Banxso has secured a financial dealer license in Vanuatu from the Vanuatu Financial Services Commission (VFSC), a critical step in Banxso’s efforts to amplify its influence in the Pacific region. The acquisition of a license from the Financial Services Commission (FSC) of Mauritius provides the broker and its clients with more options.

These developments come in the aftermath of a controversy involving fake advertisements featuring deepfakes of Elon Musk, which led to substantial financial losses – millions of rands – for over 150 South African investors. Banxso has already promised compensation to investors.

Banxso tackling deepfake scam, vows to compensate clients

In response to this incident, Banxso gave an interview to Chris Steyn from BizNews, which addressed the intricate issue surrounding a deceptive advertising scandal that significantly impacted South African investors.

The heart of the matter involved deepfake advertisements, notably featuring a counterfeit Elon Musk, which misled approximately 150 investors into parting with millions of rands. This sophisticated scam utilized the allure and perceived credibility of Musk, a global tech icon, to ensnare individuals seeking financial gain.

In an enlightening interview, Lara Huges-Thom, Chief Legal Officer (CLO) of Banxso South Africa (Banxso PTY), discussed Banxso’s response to this crisis was multi-faceted, indicating both the challenges and the necessary steps needed to combat such digital deceit.

First, the firm acknowledged the sophistication and convincing nature of these fake ads, which exploited the trust of potential investors. The use of deepfake technology represents a growing threat in digital advertising, capable of creating highly persuasive and entirely fabricated visual and audio content.

Recognizing the severity of the impact on its clients and the broader trading community, Banxso outlined its immediate actions and long-term strategies to address the issue. The company emphasized its commitment to enhancing its verification and onboarding processes, ensuring that potential clients are more thoroughly vetted to prevent future incidents. This includes increased scrutiny of the sources through which clients are acquired, especially in the face of advertising that could potentially mislead or deceive.

Furthermore, Huges-Thom stressed the importance of education and awareness among its clients and the public. By informing individuals about the potential for such scams and how to recognize them, the firm aims to build a more resilient investor community. This educational approach is seen as crucial in an era where digital scams are becoming increasingly sophisticated.

The interview also touched on the broader implications of such scams for the trading industry and the regulatory landscape. Banxso called for a collective effort among industry players, regulatory bodies, and technology providers to develop more effective mechanisms to detect and prevent the dissemination of deepfake content and other forms of misleading digital advertising.

The incident serves as a stark reminder of the ongoing battle against digital fraud and the need for continuous innovation in security and educational measures to protect investors. As Banxso navigates its path forward, the company’s response to this crisis will be closely watched by both industry insiders and investors, serving as a case study in the importance of integrity, vigilance, and adaptability in the face of evolving digital threats.

Read this next


BlockDAG’s Explosive Presale Hits $20.3M In April Swaying Investors From XRP’s Price Trends Upward, & Polygon’s NFT Market

Learn about BlockDAG’s impressive $20.3M presale results, XRP’s price increase prospects, and the booming NFT market on Polygon among the top 10 cryptocurrencies.

Retail FX

Financial Commission warns of Eplanet Brokers

The Financial Commission, a self-regulatory compliance specialist for the financial services industry, is ramping up its scrutiny of unregulated brokerage firms. Today, the independent association warned against a company called Eplanet Brokers.

Retail FX

Dubai crypto exchange steps into prop trading

Dubai-based cryptocurrency trading platform, CoinW Exchange, marked its sixth anniversary by announcing a rebranding initiative and launching a proprietary trading product.


Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).


Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.


BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.