Crypto belongings in South Africa could be thought of monetary merchandise below the regulatory proposal
Cryptocurrency assets would be treated like financial products under the South African Financial Advisory and Brokerage Services Act (FAIS) under a draft declaration by a financial regulator.
"The declaration would mean that any person who provides advice or brokerage services in relation to crypto assets must be licensed as a financial service provider under the FAIS Act and meet the requirements of the FAIS Act," wrote the Financial Sector Conduct Authority (FSCA ), which asks for an opinion on the proposal. "This includes exchanges and platforms for crypto assets as well as brokers and consultants."
How every country deals with cryptocurrency has a significant impact on which regulators oversee crypto activity and which licenses companies need to track. In January 2019, the country's central bank released a paper advising that regulatory measures on crypto assets need to be prioritized to protect consumers.
The regulator also said the statement could improve disclosure of the risks of crypto assets to customers looking to invest. The draft has no impact on the status of crypto assets in connection with other laws such as exchange control regulations, requirements of the Pension Fund Act and the Act on Collective Investment Schemes, etc., nor does it attempt to regulate (legitimize) or make crypto assets credible, ”wrote the Supervisory authority.
The draft will serve as an "intermediate step" between further developments by the working group on the regulation of crypto assets in the country, which will have an impact on future crypto policy in South Africa.
The FSCA invites interested parties to comment on the draft statement by January 28, 2021.