Cryptocurrency assets would be treated like financial products under South Africa’s Financial Advisory and Intermediary Services (FAIS) Act, under a draft declaration by a financial regulator.
“The Declaration would have the effect that any person furnishing advice or rendering intermediary services in relation to crypto assets must be authorised under the FAIS Act as a financial services provider, and must comply with the requirements of the FAIS Act,” wrote the Financial Sector Conduct Authority (FSCA), which is seeking comment on the proposal. “This will include crypto asset exchanges and platforms, as well as brokers and advisors.”
How each country treats cryptocurrency has major implications for which regulators oversee crypto activities and what licenses companies have to pursue. In January 2019, the country’s central bank published a paper saying that regulatory action on crypto assets needed to be prioritized to protect consumers.
The regulator also said that the declaration could improve disclosures about the risks of