South African regulators are taking new steps for cryptocurrency regulation.
The South African Central Bank has previously stated that cutting off the relations of banks with crypto investors due to possible risks is a threat to financial integrity. Financial watchers around the world are grappling with how to regulate cryptocurrencies, whose prices have fallen since November last year. South Africa is also innovating in this regard.
Crypto Regulation Step from South Africa
According to a statement released today, South Africa’s financial watchdog has classified crypto assets as financial products and allowed them to be regulated.
The Financial Industry Conduct Authority (FSCA) has stated that a crypto-asset, which it calls a “digital representation of value,” must be regulated in South Africa from the date of issue.
Kuben Naidoo, Vice-President of the Reserve Bank of South Africa (SARB), told Reuters in May that regulation of crypto-assets is imminent and that he wants crypto-assets regulated to prevent theft, money laundering and undermining monetary policy.
Regulations that officials say they plan to introduce include enforcing currency controls and licensing crypto trading companies.
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