Cryptocurrency has been the subject of a declaration published by the FSCA, bringing a range of crypto-related financial services under its jurisdiction.
Cryptocurrency assets are the subject of a declaration issued by South Africa’s Financial Sector Conduct Authority (FSCA). The declaration lists crypto assets as a financial product under the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002. Gazetted on 19 October, the declaration brings providers of financial services in relation to crypto assets within the FSCA’s regulatory jurisdiction.
Cryptocurrency: A financial product
The FSCA published a draft declaration of crypto assets as a financial product under the FAIS Act for public consultation on 20 November 2020. A total of 94 individual comments were received from 22 different commentators. Following this public consultation process, the FSCA has published the final declaration in the Government Gazette and on the FSCA’s website.
The FSCA has also published a policy document supporting the declaration. It provides clarity on the impact of the declaration, including transitional provisions and the approach the FSCA is taking in establishing a regulatory and licensing framework applicable to Financial Services Providers (FSPs) that provide financial services related to crypto assets.
Market conduct regulator
The FSCA was established to be the dedicated market conduct regulator in South Africa’s Twin Peaks regulatory model implemented via the Financial Sector Regulation Act. Its mandate includes all financial institutions that provide a financial product and/or a financial service as defined in the Financial Sector Regulation Act.
In April, the Central African Republic adopted Bitcoin as legal tender.
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