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According to the new FAIS (Financial Advisory and Intermediary Services) Act in South Africa, cryptocurrency assets are classified as financial products—which can be regulated.

Eugene Du Toit—the head of regulatory frameworks at FSCA (Financial Sector Conduct Authority), clarified that the FAIS Act does not mean that cryptocurrencies are now legal tender in the country.

“We are not legitimising crypto assets,” Du Toit said at a press conference. “We are not giving credence to crypto assets,” he said.

The Act states that crypto “is not issued by a central bank, but is capable of being traded, transferred or stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility; applies cryptographic techniques; and uses distributed ledger technology…crypto asset miners and node operators performing functions in respect of the security and health of the network as well as persons rendering financial services in relation to non-fungible tokens will be exempted from abiding by the provisions of the FAIS Act.”

Unathi Kamlana—the head of the FSCA, says the new act will enable authorities to fight crypto scams and protect customers. Crypto asset service are encouraged to apply for a licence between June 1, 2023, and November 30, 2023.

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By Elijah Christopher 

 

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Elijah Christopher is a lifelong creative artist and a journalist for “A New Touch Of Africa”, an American news media and magazine focusing on Africa-related issues, fashion, new technologies and innovations. He has contributed to several published works, most notably a collaborative poem celebrating Scottish poet Edwin Morgan and in 2021 was the winner of the DIAJ Award for his photo-artistry.

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