Home Business Crypto platforms must be licensed in 2023 to operate legally: South African...

Crypto platforms must be licensed in 2023 to operate legally: South African financial regulator

“We are not legalizing crypto assets,” said Eugne du Toit. (Representative)


The country’s financial conduct regulator said on Thursday that cryptocurrency financial companies in South Africa must apply for a license between June 1 and November 20, 2023, to operate legally.

An announcement on Wednesday that crypto assets are financial products does not mean they are legal tender, Eugene Du Toit, head of the Financial Sector Conduct Authority’s regulatory framework department, said at a news conference.

“We are not legalizing crypto assets,” Du Toit said. “We are not crediting crypto assets.”

Financial watchdogs around the world are grappling with how to control the growing number of digital cryptocurrencies and tokens whose prices have plummeted since November last year.

Unti Kamalana, the head of the regulator, said that the FCSA deliberately referred to crypto assets rather than cryptocurrencies, as the regulators do not consider digital assets to be eligible as currencies.

Declaring that crypto assets are financial products would enable authorities to crack down on scams and protect customers while they previously had no power to do so, he said.

The announcement and further regulations to follow could help South Africa avoid being graylisted by the global watchdog Financial Action Task Force – its governance against terrorism financing and money laundering has flaws, regulators said. he said.

The governor of South Africa’s central bank said in August that the country was at risk of greylisting, which IMF researchers said last year reduces capital flows into the country by an average of 7.6% of GDP.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)


Here’s Why Maruti Is Not Joining The EV Race

<!-- -->Over the weekend, I was reading a blog by one of my favorite authors, Morgan Hosel. I came across an interesting conversation...

PSU stocks in limelight as BHEL, PFC and REC hit record highs

<!-- -->Railway stocks rallied as they would benefit from increased government spending. (File)New Delhi: There is a boom in the shares of public...

sebi cuts the deadline for dividend payment to mutual fund unit holders

<!-- -->SEBI cuts the timeline for dividend payment by AMCs to unit holders. (File)New Delhi: Capital markets regulator Securities and Exchange Board of...


Please enter your comment!
Please enter your name here

Most Popular

Fifa World Cup: Duke celebrated unique after scoring the goal. News & Features Network

In the second match of Fifa World Cup Group D, Australia beat Tunisia 1-0 and kept their hopes alive in the tournament. Australia...

Elon Musk’s Twitter purchase was predicted 7 years ago, know what is the whole matter

Elon Musk Simpsons: The world's richest man Elon Musk bought the social media platform Twitter last month. It...

Lionel Messi’s Thunderous Strike That Helped Argentina Keep World Cup Hopes Alive. Watch | football news

Lionel Messi's dream of matching late great Diego Maradona's Argentina legacy lives on. The seven-time Ballon d'Or-winning forward pulled level with Maradona on...

Lionel Messi On Target As Argentina Beat Mexico To Keep World Cup Hopes Alive | football news

Lionel Messi helped keep Argentina's World Cup bid alive with the first goal in a 2-0 victory over Mexico on Saturday. Defeat to...

Recent Comments