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South Africa's Financial Watchdog to Bring Crypto Exchanges Into Regulatory Oversight

The Financial Sector Conduct Authority said it will start to regulate the crypto industry "in a phased and structured approach."

Updated Dec 10, 2022, 9:15 p.m. Published Jun 11, 2021, 11:09 a.m.

South Africa's financial regulator announced its intention to bring crypto businesses under its oversight.

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In a position paper publishedhttps://www.ifwg.co.za/wp-content/uploads/IFWG_CAR_WG_Position_Paper_on_crypto_assets.pdf Friday with the Intergovernmental Fintech Working Group (IFWG), the Financial Sector Conduct Authority (FSCA) said it will start to regulate crypto assets "in a phased and structured approach."
The IFWG recommended imposing anti-money laundering rules on crypto asset service providers, monitoring cross-border financial flows and applying financial-sector laws to the crypto industry.
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 forming regulations in the country, saying it has stymied growth because customers "arrive at our platform with skepticism."
Brandon Topham, head of enforcement for the FSCA, told Bloomberg in January that regulation would focus primarily on protecting consumers rather than businesses.

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