Crypto Classified As Financial Product, In South Africa’s Latest Adoption Move.
All Crypto assets henceforth will be identified as financial products in South Africa, to make it easier for regulators to monitor the market and help to safeguard consumers according to the nation’s Financial Sector Conduct Authority.
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The Financial Sector Conduct Authority is a financial institutions market conduct regulator and a successor agency to the Financial Services Board (South Africa) in South Africa. It defines “a digital representation of value” in a gazette notice published on Wednesday. A crypto asset isn’t issued by the central bank, but can be traded, transferred or stored electronically for purposes of payment, investment or other forms of utility, according to the announcement.
Also Read: South Africa Stablecoin Gets Management Team.
The change, which takes effect immediately and falls under the Financial Advisory and Intermediary Services Act, 2022, comes as countries around the world are moving to regulate cryptocurrencies more strictly, particularly amid the recent volatility in prices and the collapse of several important crypto firms.
The deputy governor of South Africa’s central bank said this summer the bank had come to view cryptocurrency as a financial asset and was looking into regulating the sector.