The South Africa Reserve Bank and SARS froze bank account of a 19 year old forex trader with R21 million in it
What does this mean for South African traders?
The young trader who’s name is known to this publication is embroiled in a battle with the South African banking regulatory body The Reserve Bank of South Africa (SARB) over $1 million dollar forex withdrawal which caught the attention of the prudential authority.
“Me and my friends started trading in 2017 , and our target was to reach $1 million USD, we made withdrawal here and there for personal use but our biggest withdrawal was R14 000 000.00” said young trader who can’t be named for safety reasons.
Evidence seen by FX Magazine proves the youngstar had $1,014,889.56 USD in trading account as of March 2019. “Total amount we made was R21 million in rand since 2017, after making our last withdrawal to Nedbank account which was R14 million in rand i got alert from the bank that my account has been frozen following instructions from SARB and SARS, we have provided proof of the money without any luck of getting back our money which including other funds in the account about R3.2m before the 1 000 000. 00 USD withdrawal ” he said.
The unemployment rate in South Africa rose to 27.6 percent in the first quarter of 2019 from 27.1 percent in the previous period. It is the highest jobless rate since Q3 2017.
As hope of employment amongst the youth deteriorates with 6.20 million remains unemployed, thousands of youth seek refuge in the hands of digital entrepreneurship businesses such as Forex, Crypto Currencies and Multi Level to survive.
“This is just a clear attack on millions of unemployed black youth of South Africa who now resort to forex trading to make end meet. This government is not happy we making a living on our own” said one social media user.
The South African Reserve Bank has not responded to an email sent to them seeking clarity and regulative framework that traders should follow when making forex disinvestment at the time of going to press.