South Africa is fast-tracking the process of bringing in new Cryptocurrency (“Crypto”) regulations to curb the misuse of cryptocurrencies in the country.
Crypto has proven that it can survive unfavorable times. As of November 2022, the number of crypto owners were over the 400 million mark.
Last year the Financial Sector Conduct Authority (“FSCA”), announced that it had classified Cryptocurrency assets as financial products making way for digital tokens to be regulated in the country.
The proclamation was put forth in a notice in the government gazette titled “Declaration of a crypto asset as a financial product under the financial advisory and intermediary services act.”
Due to the numerous fallouts encountered by top Crypto organisations last year, many in the industry are predicting increased regulation and oversight in 2023. In Africa, regulators are moving from a caveat emptor approach to regulating the sector, furthering their objectives of consumer protection, and combating money laundering and terrorism financing.
Cryptocurrency financial companies in South Africa will need to apply for a licence between 1 June and November 2023, in order to operate legally. As such, it would allow the government to regulate the Cryptocurrency markets. The legislation falls under the Financial Advisory and Intermediary Services Act, of 2022.
South Africa is actually amongst the few countries that's ahead of the curve in this space.
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