South Africa’s Financial Conduct Authority Plans To Implement Framework To Protect Cryptocurrency Investors At Risk: Report

Unati Kamlana, Commissioner for the South African Financial Sector Regulator, said the government’s implementation of the crypto framework will aim to mitigate potential risks.

According to a Bloomberg report on Friday, Kamlana said financial regulators plan to introduce a regulatory framework as early as 2022 to protect investors from the “potentially high potential” of crypto assets. The Commissioner said any structure for cryptocurrencies would be established in consultation with the Prudential Authority and the Financial Supervisory Board of the Reserve Bank of South Africa.

“We want to be able to intervene if we believe offering potential customers products that they don’t understand represents a potentially high risk,” Kamlana says. “We have to be very careful not to just legalize them.”

The FSCA Commissioner’s comments follow South Africa’s intergovernmental fintech working group, which said in June it would lay the groundwork for a “phased and structured” regulation of cryptocurrencies in the south of the country. The African country’s cryptocurrency policy is mostly non-destructive, but is also intended to alert the public that the government does not have adequate protection or remedies against fraud or fraud.

When the co-founder of South African crypto investment platform AfriCrypt allegedly went missing with billions of dollars in user funds, the FSCA said it was incapacitated as crypto assets were not regulated in the country. After receiving the warning, major crypto exchange Binance also challenged the FSCA’s credibility as South Africa’s financial regulator, instead claiming that their Financial Intelligence Center ensures that the country ensures that crypto companies comply with local laws.

On the subject: A South African asset manager denies stealing billions of dollars from users and claims to have lost $ 5 million due to hacker attacks.

In May, the Reserve Bank of South Africa launched a preliminary study on the implementation of a central bank digital currency (CBDC). The central bank is also participating in a pilot program with banks in Australia, Singapore and Malaysia to test international settlements using the CBDC.

“We want to be able to intervene if we think potential customers have high-risk products that they don’t understand,” says Unati Kamlana.

Unati Kamlana, Commissioner for the South African Financial Sector Regulator, said the government’s implementation of the crypto framework will aim to mitigate potential risks.

According to a Bloomberg report on Friday, Kamlana said financial regulators plan to introduce a regulatory framework as early as 2022 to protect investors from the “potentially high potential” of crypto assets. The Commissioner said any structure for cryptocurrencies would be established in consultation with the Prudential Authority and the Financial Supervisory Board of the Reserve Bank of South Africa.

“We want to be able to intervene if we believe offering potential customers products that they don’t understand represents a potentially high risk,” Kamlana says. “We have to be very careful not to just legalize them.”

The FSCA Commissioner’s comments follow South Africa’s intergovernmental fintech working group, which said in June it would lay the groundwork for a “phased and structured” regulation of cryptocurrencies in the south of the country. The African country’s cryptocurrency policy is mostly non-destructive, but is also intended to alert the public that the government does not have adequate protection or remedies against fraud or fraud.

When the co-founder of South African crypto investment platform AfriCrypt allegedly went missing with billions of dollars in user funds, the FSCA said it was incapacitated as crypto assets were not regulated in the country. After receiving the warning, major crypto exchange Binance also challenged the FSCA’s credibility as South Africa’s financial regulator, instead claiming that their Financial Intelligence Center ensures that the country ensures that crypto companies comply with local laws.

On the subject: A South African asset manager denies stealing billions of dollars from users and claims to have lost $ 5 million due to hacker attacks.

In May, the Reserve Bank of South Africa launched a preliminary study on the implementation of a central bank digital currency (CBDC). The central bank is also participating in a pilot program with banks in Australia, Singapore and Malaysia to test international settlements using the CBDC.