Crypto Now Defined As A Financial Product In South Africa
In an effort to regulate cryptocurrencies and protect consumers Government has officially defined Cypto as a financial product.
The Financial Sector Conduct Authority has now defined crypto assets as a digital representation of value and as such as a ‘financial product’. Since financial products fall under their jurisdiction it is seen as the first move in efforts to try and regulate cryptocurrency in SA.
‘the first move in efforts to try and regulate cryptocurrency in SA’
The declaration comes into effect immediately (as of 19 October 2022) and is the local attempt to regulate the ever hard to define and fully control crypto space. Government says its motivation is not simply an attempt to stay relevant and exercise control over these currencies but is aimed at providing consumers added protection from digital fraud. It will also officially allow financial advisors to advise their clients about these financial products.
As a result, this will mean that these ‘financial products‘ will now have to be licensed for use in SA.
