The South African financial regulator has published a draft declaration of crypto assets as financial products. The regulator says South Africa has seen “an exponential increase in the supply and use of crypto assets.”
Cryptography Regulations in South Africa
The South African Financial Sector Conduct Authority (FSCA) announced on Friday that it had released “a draft declaration of crypto assets as a financial product under the Advisory and Intermediation Services Act. financial [FAIS]. Comments on the draft statement can be submitted until January 28, 2021. The regulator wrote:
Globally, retail investors are rapidly becoming more and more interested in purchasing crypto assets. South Africa has also seen an exponential increase in the supply and use of crypto assets.
The draft statement incorporates some recommendations for the regulation of cryptocurrency as a financial product under the FAIS Act from a position paper released this year by the Crypto Asset Regulation Task Force (CAR WG).
The new rules apply to cryptocurrency service providers, including crypto exchanges, advisers, and brokers. They will need to register with the FSCA as financial service providers (PSF). The FSCA detailed:
The declaration would have the effect that any person providing advice or providing intermediary services in relation to crypto assets must be authorized under FAIS law as a financial service provider.
The financial regulator clarified, “The draft declaration has no impact on the status of crypto assets in the context of other laws … nor does it attempt to regulate, legitimize or credit crypto assets.”
“The draft statement is simply intended to be an intermediate step in mitigating some immediate risks in the crypto asset environment, pending the outcome of broader developments currently underway through the Regulatory Working Group. crypto assets (CAR WG), which will inform future policy interventions. to be implemented through a variety of regulators and laws, ”FSCA described.
What do you think of South Africa regulating crypto assets? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any products, services or businesses. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.