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Cryptocurrency Assets in South Africa Would Be Considered Financial Products Under Regulator Project

FSCA, or Financial Sector Conduct Authority, published a draft Declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act.

“The Declaration would have the effect that any person furnishing advice or
rendering intermediary services in relation to crypto assets must be authorised under the FAIS Act as a financial services provider, and must comply with the requirements of the FAIS Act. This will include crypto asset exchanges and platforms, as well as brokers and advisors”, wrote the Financial Sector Conduct Authority (FSCA).

According to coindesk, how each country treats cryptocurrency has major implications for which regulators oversee crypto activities and what licenses companies have to pursue. In January 2019, South Africa’s central bank published a paper stating that regulatory action on crypto assets needed to be prioritized to protect consumers.

“The draft doesn’t impact the status of crypto assets in the context of other laws such as exchange control regulations, requirements under the Pension Fund Act and Collective Investment Schemes Act and so forth, nor does it attempt to regulate, legitimize or give credence to crypto assets,” the regulator wrote.

The draft will serve as an “interim step” between more developments from the country’s Crypto Assets Regulatory Working Group, which will impact future crypto policies in South Africa.

The FSCA is asking interested parties to submit comments on the draft declaration on or before 28 January 2021.

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