South Africa will implement cryptocurrency rules in 2022
According to Bloomberg, South Africa’s financial regulatory agency aims to adopt crypto laws in 2022.
The Financial Sector Conduct Authority (FCSA) of South Africa says it intends to adopt a set of laws that would provide proper investor protection, particularly in light of the country’s burgeoning cryptocurrency-related fraud.
These cryptocurrency-related frauds have cost victims billions of dollars and prompted investigations by law enforcement agencies worldwide. In one incident, two brothers reportedly stole $3.6 billion in bitcoin from investors via their now-defunct Africrypt investment scam.
According to South Africa’s top financial regulator, Unathi Kamlana, the crypto laws would contain measures governing cryptocurrency trading as well as issues connected to the interplay between digital currency and the country’s financial markets.
According to Bloomberg, Kamlana expressed a desire for the FCSA to retain vigorous crypto monitoring in order to safeguard investors from potentially dangerous schemes.
However, the FCSA commissioner said that the body did not believe cryptocurrency posed substantial dangers to South Africa’s financial stability. Additionally, Kamlana emphasised that the FCSA regards cryptocurrencies as assets, not currency.
South Africa’s central bank announced intentions in December 2019 to take steps to restrict the use of cryptocurrency to circumvent currency control procedures.