South Africa’s Financial Regulator Is Planning Crypto Rules to Protect Vulnerable Population: Report

The regulations will be unveiled in early 2022 as a response to two major scams that defrauded investors of significant sums earlier this year.

Dec 10, 2021 at 2:39 p.m. UTC
Updated Dec 10, 2021 at 4:45 p.m. UTC

South Africa’s Financial Sector Conduct Authority (FSCA) is preparing a regulatory framework for crypto to protect the more vulnerable members of its society.

  • The regulator wants to establish rules on how crypto trading should be conducted, according to a Bloomberg report Friday.
  • “What we want to be able to do is to intervene when we think that what is provided to potential customers are products that they don’t understand that are potentially highly risky,” FCSA commissioner Unathi Kamlana said.
  • The regulations, which will be unveiled early in 2022, are being brought forward in response to two major scams that defrauded investors of significant sums earlier this year.
  • In June, the founders of crypto investment firm Africrypt disappeared with around $3.6 billion of bitcoin. This followed the Mirror Trading International (MTI) scam that defrauded investors of some $589 million.
  • The FCSA is also aiming for its framework to address how crypto interacts with traditional finance products and balance sheets and the threat they may pose to financial stability.
  • Kamlana urged would-be crypto investors to “wait to see” how the Reserve Bank progresses on its work on a central bank digital currency.


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.

Jamie Crawley is a CoinDesk news reporter based in London.