South Africa Crypto Regulation Update
South Africa's crypto regulation is being redefined as authorities recognise cryptocurrencies as financial products. It will likely include all digital tokens and assets in the country's financial laws. This move is a long-awaited step towards the complete regularisation of the cryptocurrency market in the country.
On Wednesday, October 19, the South African crypto regulation authority, the FSCA (Financial Sector Conduct Authority), notified the public about the update. It briefed about the amendments in the Financial Advisory and Financial Intermediary Services Act (FAIS) of 2002.
A new definition of cryptocurrencies
The notification declared that the cryptocurrencies are "a digital representation of value". Moreover, the new regulation defined them as values that can be traded, transferred, and reserved on a distributed ledger. It also maintained that these are to be recognised as "financial products".
Therefore, all the laws that apply to traditional financial products will also apply to cryptocurrencies. The update in the act is likely to boost the regulatory efforts in the country.
Earlier indications for South Africa crypto regulation upgrade
Earlier this year, in July, the regulatory body and the South African Reserve Bank (SARB) indicated upgrades in monetary laws. It specified that BTC and altcoins will be defined as assets.
However, a draft for this declaration was published back in November 2020. After that, in mid-2021, The Intergovernmental Fintech Working Group (IFWG) proposed a complete roadmap in a position paper on crypto assets.
It discussed in detail the anti-money laundering (AML) laws and the KYC (know your customer) requirements for service providers. Also, among the digital asset community in RSA, there were debates about their inclusion in monetary laws.
Thus, the step was highly anticipated among virtual asset holders and issuers. And now, they have finally made the reforms in the laws with the FAIS Act 2022. It will guide them on how the market will shape RSA in the coming years.
Besides, RSA is a growing country for cryptocurrencies; many firms are providing related services. With the introduction of this act, authorities will be able to manage them efficiently.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.