Sun. Jun 23rd, 2024

South African Regulator FSCA Explains Reasons Behind Strict Regulations on Global Crypto Operators.

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South Africa Crypto Regulation

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Brandon Topham, the head of enforcement at South Africa’s financial sector conduct authority (FSCA), has said that the organization has targeted global cryptocurrency exchanges operating in the country because they “offer a derivative product with crypto as the underlying or reference asset.”

As previously reported, the South African regulator issued public warnings against global crypto exchange platforms such as FTX, Binance, and Bybit. The regulations issued by the regulator have created unconducive environment for global exchange operators. 

Some selected crypto exchanges operating in the country has been forced to discontinue certain services due to the strict regulations.

Read Also: ITU Begins Crypto, CBDC Standardisation

While the FSCA maintains that its regulations are intended to protect the public, some speculate that global exchange platforms are targeted because they deal with global crypto currency exchange providers while protecting Local operators.

The official reiterated that the FSCA is developing a regulatory framework to protect cryptocurrency investors.

“We are considering creating a regulatory environment in which they can be registered to protect customers and legitimate players from exploitation.” “This is currently being worked on,” said the FSCA official.

According to the official, once the desired regulatory framework is in place, South Africa “will be one of the most progressive countries in the world at this stage.”

Additionally, Topham claimed that the regulator is not attempting to stifle the crypto industry’s growth or global crypto exchange providers. Instead, the FSCA stated that it wants to facilitate industry development but “will not rush into this”. Protecting interest of the investors is the centre of focus he explained.

About The Author

By Tony Chimdiuto

Diutocoinnews Admin. Send all publications to info@diutocoinnews.com.ng

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