South Africa Treasury expects to finalize cryptocurrency regulation development in 2022

The regulator has said that it expects cryptocurrencies to be declared financial products

27.02.2022 - 07:00

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What’s new? The South African Treasury has stated that the inclusion of virtual asset service providers (VASPs) as accountable institutions in the Financial Intelligence Center (FIC) Act will be completed in 2022. The move to regulate VASPs comes as a result of South Africa’s attempts to address significant weaknesses in the country’s anti-money laundering and counter-terrorist financing systems.

Document developed by the South African Treasury

The Treasury’s budget review document states:

“This change would address concerns around money laundering and terror risk financing through crypto-assets and align the act to the standards set by the FATF for virtual assets and related service providers.”

What are the prospects? The Treasury has said that it expects cryptocurrencies to be declared financial products under the Financial Advisory and Intermediary Services Act (FAIS) The announcement is aimed at protecting consumers. The document notes:

“According to this declaration, any person providing advice or intermediary services related to crypto-assets must be recognized as a financial services provider under the act and must comply with the act’s requirements.”

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