Crypto regulatory framework of South Africa will be unveiled in early 2022

Crypto regulatory framework of South Africa will be unveiled in early 2022, a commissioner with the regulatory body has revealed. This new regulatory framework will determine how the trading of digital assets should be done.

Crypto regulatory framework of South Africa will be unveiled:

With the increasing influence and adoption of crypto, each country is trying to regulate this unregulated giant. Most countries say that they want to protect their citizens from Ponzi schemes. In this context, the Financial Sector Conduct Authority (FSCA) of South Africa is going to reveal a new crypto regulatory framework in early 2022. A commissioner with the FSCA has revealed this news of regulatory framework.

Unathi Kamala, a commissioner with FSCA has revealed that the firm is going to unveil a new regulatory framework that will cover the topic that how the trading of crypto assets like Bitcoin should be performed. He further added that his firm is not keen on legalizing highly risky products. The Commissioner elaborated:

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. We must be very careful to not just legitimize them.

A draft of the crypto regulatory framework is being set and will be discussed with other bodies. Still, in his remarks, Kamlana asserts that cryptocurrencies do not pose a systemic risk to the stability of the financial services sector just yet. The commissioner however said the FSCA sees cryptos as assets and not currency.

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