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. UTC
Updated Sep 14, 2021 at 1:10 p.m. UTC

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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Robinhood Plans ‘Web 3’ Crypto Wallet for DeFi Traders, NFT Buyers

Robinhood’s new custodial wallet will cater to “advanced” crypto users and live separately from the existing wallet, the firm’s Johann Thompson said.

Robinhood’s new custodial wallet will cater to “advanced” crypto users and live separately from the existing wallet, the firm’s Johann Thompson said.

2
New Crypto Native Firm Fortis Digital Raising $100M Fund

The fund focuses on altcoins and requires potential investors to have a minimum $2.5 million net worth.

The fund focuses on altcoins and requires potential investors to have a minimum $2.5 million net worth.

3
El Salvador's President Promotes Bitcoin Adoption by Emerging Countries

Nayib Bukele is hosting financial representatives from 44 developing economies at the Alliance for Financial Inclusion's annual meeting.

Nayib Bukele is hosting financial representatives from 44 developing economies at the Alliance for Financial Inclusion's annual meeting.

4
Pierina Merino: Rethinking Social Media for the Metaverse

Meet the 30-year-old Venezuelan founder of FlickPlay, a hot social metaverse platform. Merino will appear at CoinDesk's Consensus festival.

Meet the 30-year-old Venezuelan founder of FlickPlay, a hot social metaverse platform. Merino will appear at CoinDesk's Consensus festival.