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South Africa to Accelerate Crypto Regulation in Wake of Scams: Report

South Africa to Accelerate Crypto Regulation in Wake of Scams: Report

South Africa to Accelerate Crypto Regulation in Wake of Scams: Report

A regulatory structure should be in place in three to six months.

A regulatory structure should be in place in three to six months.

A regulatory structure should be in place in three to six months.

AccessTimeIconJul 1, 2021, 10:11 AM
Updated Aug 21, 2021, 6:51 PM

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South Africa is accelerating its push to regulate crypto assets after being hit by two scams this year, Bloomberg reported.

  • A regulatory structure should be in place in three to six months, Bloomberg said, citing Kuben Naidoo, CEO of the Prudential Authority, which regulates the country’s banks and insurers.
  • “We are of the view that cryptocurrencies are risky and we want to ensure that the financial sector is aware of those risks and pricing for those risks properly,” Naidoo said.
  • In June, the Financial Sector Conduct Authority (FSCA), which regulates market conduct, said it will start to deal with crypto assets "in a phased and structured approach."
  • That's the same month that the founders of crypto investment firm Africrypt disappeared with an estimated $3.6 billion of bitcoin. Earlier this year, Mirror Trading International reportedly defrauded investors of more than $589 million.

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