The South African financial regulator has published a draft regulation this weekend, considering the cryptocurrencies as financial products. Reminding that it’s still a draft, it said that all persons dealing with cryptocurrencies should be registered under its FAIS act, and be obliged to the rules specified. This decision was made on noticing the rise in use of cryptos in South Africa.
South Africa Govt. Published a Draft Crypto Bill
Walking in the patch of other Crypto nations, South Africa may soon regulate cryptocurrencies in its nation. The nation’s financial regulator, Financial Sector Conduct Authority (FSCA) has published a draft regulation over the weekend detailing on regulating the cryptocurrencies. Many points were taken from the recommendations from
Crypto Assets Regulatory Working Group’s guidelines.
It has reminded that the draft is “intended to be an interim step in mitigating certain immediate risks in the crypto assets environment,” Yet, there are rules on how to regulate cryptocurrencies and people involved in it if this is regulated. As the regulator said “an exponential increase in the provision and use of crypto assets” was observed lately, the official regulation is imminent.
The report, titled as “a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act [FAIS],” mentions that any person or entity dealing with cryptocurrencies like the advisors, brokers or crypto exchanges should be registered as Financial Services Providers (FSPs) under the Financial Sector Conduct Authority (FSCA).
Saying “The draft declaration in no way impacts the status of crypto assets in the context of other laws … nor does it attempt to regulate, legitimize or give credence to crypto-assets,” it is now asking for comments on the draft which can be submitted until January 28th 2021.
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