The South African government has updated the Financial Advisory and Financial Intermediary Services Act (FAIS) to define cryptocurrency assets as financial products.
South Africa’s Financial Sector Conduct Authority (FSCA) announced the changes to the country’s legal framework. According to the government’s amendments, cryptocurrency in the country is now considered “a digital representation of value” and represents a financial product.
Thus, cryptocurrencies are fully regulated by the FSCA on a par with securities or debentures. Therefore, under South African law, crypto service providers, whether local or international firms, will be required to obtain a license to provide financial services within the state.
Farzam Ehsani, co-founder and CEO of the crypto exchange VALR, called the event “a historic moment for South Africa.” He emphasized that the government initiative would improve consumer protection and ensure compliance with AML and KYC standards.
Recall that the South African government announced its intention to regulate cryptocurrencies as financial assets in July this year.
