South Africa's Financial Watchdog to Bring Crypto Exchanges Into Regulatory Oversight
The Financial Sector Conduct Authority said it will start to regulate the crypto industry "in a phased and structured approach."
Jun 11, 2021 at 11:09 a.m. UTCUpdated Aug 21, 2021 at 7:16 p.m. UTC
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South Africa's financial regulator announced its intention to bring crypto businesses under its oversight.
- In a position paper published Friday with the Intergovernmental Fintech Working Group (IFWG), the Financial Sector Conduct Authority (FSCA) said it will start to regulate crypto assets "in a phased and structured approach."
- The IFWG recommended imposing anti-money laundering rules on crypto asset service providers, monitoring cross-border financial flows and applying financial-sector laws to the crypto industry.
- Publication of the paper may provide some certainty for stakeholders in South Africa's crypto industry, which has been hindered by a lack of clarity.
- Sean Sanders, CEO of Cape Town-based exchange Revix, bemoaned the slow rate of forming regulations in the country, saying it has stymied growth because customers "arrive at our platform with skepticism."
- Brandon Topham, head of enforcement for the FSCA, told Bloomberg in January that regulation would focus primarily on protecting consumers rather than businesses.
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