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Amendments to South Africa’s financial laws will introduce new crypto regulations

Crypto-asset service providers will become regulated entities as part of a series of revisions to South Africa’s financial regulations.
According to a South African Treasury statement, additional crypto regulations would be “finalised throughout 2022.”

In a nutshell, the proposed revisions will compel any individual offering advisory or intermediary services linked to crypto assets to be recognised as a financial services provider under the act and to comply with the act’s standards.

The general manager of the Luno crypto platform in South Africa, Marius Reitz, commented on the revisions, saying that credible crypto players embrace regulation and adding that regulation is the key element of the cryptocurrency ecosystem.

In the past South African government has repeatedly advised huge players like Binance not to operate in the nation. Unathi Kamlana, the commissioner of South Africa’s Financial Sector Conduct Authority, was also outspoken about the need to safeguard vulnerable crypto investors.

In addition, the Treasury report mentions the “risks posed by so-called stablecoins,” which will be addressed later this year. Plans for central bank digital currencies (CBDCs) are public and widely debated throughout Southern Africa. The public broadly discusses such developments and that CBDC can be a method for governments to better monitor money flows, as opposed to private stablecoins like Tether (USDT).

Reitz believes that South Africa would see the debut of additional CBDCS in 2022 because the country is investigating a digital currency. The CBDC might provide a safe harbour for regulators.

Photo by Jacques Nel

About the author, Deyvid Stoyanov

Deyvid developed his passion for technology, innovation, blockchain and decentralization throughout his bachelor and masters degree studies in Bulgaria and Italy. With several years of experience in the private sector, he is currently part of the FinTech Legal Center Tallinn-based team and remains immersed in the transformation of the financial and banking sector, the adoption of blockchain and cryptographic technologies as well as their interrelationship with state supervisory authorities and the European regulatory structure.

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