By: Chime Amara
The South African Financial Sector Conduct Authority (FSCA) has made moves towards regulating the state of Cryptocurrency transactions within the country. According to the recent notice from the body, there is currently an urgent need for the regulation of all Crypto assets within the country. The body classified these Crypto assets as a digital representation of value which underscores the need to regulate them.
According to the report by the head of the Financial Sector Conduct Authority (FSCA) in South Africa - Eugene Du Toit: Cryptocurrencies are Financial Products despite not being yet considered legal tender in the country and therefore must be duly regulated like every other financial asset in the country.
Highlighting the nature of the regulation to apply for Cryptocurrency within the country, the body revealed that the first step is to ensure that all Cryptocurrency exchange operating in the country are duly licensed by the FSCA.
Nevertheless, Du Toit further explained that the recognition of Cryptocurrency as Financial Products in South Africa does not mean the legalization of Cryptocurrency trading within the country. In his position: The move is not to legalize Crypto assets within the country but to give them credence.
Speaking on the need to regulate all Cryptocurrency transactions within the country, the deputy governor of the South African Reserve Bank (SARB) revealed that it was necessary to regulate all Cryptocurrency transactions within the country to prevent money laundering, theft, and unauthorized dealings within the country which could weaken the strength of the South African fiat currency.