South Africa’s Financial Watchdog to Bring Crypto Exchanges Into Regulatory Oversight
11 Jun, 2021•1 min read•Regulation
South Africa’s financial regulator announced its intention to bring crypto businesses under its oversight.
The Financial Sector Conduct Authority said it intends to bring crypto assets into its regulatory remit "in a phased and structured approach," in a position paper published Friday with the Intergovernmental Fintech Working Group (IFWG). Recommendations by the IFWG concern the implementation of an anti-money laundering framework for crypto asset service providers, a framework for monitoring cross-border financial flows and the application of financial-sector laws. Publication of the paper may provide some certainty for stakeholders in South Africa's crypto industry, which has been hindered by a lack of clarity. Sean Sanders, CEO of Cape Town-based exchange Revix, bemoaned the slow rate of regulatory progress in the country, saying it stymied growth because customers "arrive at our platform with skeptcism." Brandon Topham, head of enforcement for the FSCA, told Bloomberg in January that regulation would focus primarily on protecting consumers rather than businesses.