South Africa to release new crypto regulatory framework in 2022

South Africa to release new crypto regulatory framework in 2022

ECONOMY/PEOPLE | DEC 11, 2021 | WOZINGA NEWS

South Africa to release new crypto regulatory framework in 2022

  • South Africa’s upcoming regulations will address cryptocurrencies trading rules

By Marielle Petere Wozinga Staff

South Africa to release new crypto regulatory framework in 2022

South Africa’s Financial Sector Conduct Authority plans to release a new regulatory framework for cryptocurrency in early 2022.

FSCA commissioner Unathi Kamlana revealed the regulatory plan on Friday, a local media outlet reported

Protecting the community from scammers is the top priority. Another concern is the high volatility risks of digital currencies.

FSCA to intervene when products are highly risky

“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,” Kamlana stated.

“We must be very careful to not just legitimize them,” an article relayed the additional statement of the commissioner.

Kamlana also pointed out in an interview, “Cryptocurrencies do not pose a systemic risk to the stability of the financial services sector just yet.” 

The regulations will address cryptocurrencies trading rules and check out how digital currencies link to traditional financial products. By doing so, the government can assess if these disrupt financial stability. 

South Africa to launch central bank’s digital currency

However, the commissioner mentioned FSCA has only recognized cryptos as assets. Regulators keep an eye on South African Reserve Bank’s project to launch its stable coin.

FSCA commissioner acknowledges the appropriateness of the plan that seems the responsible approach to innovation.

“I think that if I were to advise retail investors, I would wait to see what comes out of the process of the work of the central bank,” Kamlana explained.

“The best outcome in terms of stable coins is what comes out of central bank innovation, given their reliability and stability.”

Government must regulate cryptocurrencies. Do you agree?

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