A new declaration on crypto assets has been introduced in South Africa by the country’s Financial Sector Conduct Authority.
The recent declaration describes crypto assets as a Financial products that can be used as a means of payment.
According to a statement by the Commissioner of the country’s Financial Sector Conduct Authority, Unathi Kamlana, this declaration comes under the Financial Advisory and Intermediary Services Act 2002.
“In this Notice, “the Act” means the Financial Advisory and Intermediary Services Act, 2002 (Act No.37 of 2002), any word or expression to which a meaning is assigned in the Act shall have that meaning,and – “crypto asset” means a digital representation of value that – (a) is not issued by a central bank, but is capable of being traded, transferred, or stored electronically by natural and legal persons for the purpose of payment, investment, and other forms of utility; (b) applies cryptographic techniques; and (c) uses distributed ledger technology.”.
The new declaration which is with immediate effect is part of efforts to regulate the industry by the South African Government.
Earlier, the Deputy Governor of the South African Reserve Bank (SARB) Kuben Naidoo disclosed the intention of the South African Reserve Bank to regulate crypto assets.
This he said, is to prevent theft, money laundering, and undermining of monetary policy.
“If crypto assets were to become a very ubiquitous currency, you could undermine the authority of the central bank,” he had said.