South Africa declares crypto to be a financial product subject to financial services law
South Africa recognized bitcoin and cryptocurrencies as financial products
The Republic of South Africa updated the Financial Services Act of 2002 to add the concept of crypto-assets.
The FAIS (local regulator) clarifies the term "crypto-asset" in its declaration. This includes all digital currencies issued by non-central banks that use cryptographic techniques. Such assets are recognized in South Africa as financial products.
The declaration from FAIS kicks off the long-awaited regulation of crypto-assets in South Africa. It will help protect consumer rights and comply with AML/KYC regulations.
"This is an historic moment for South Africa: Today the Financial Sector Conduct Authority (FSCA) declared a crypto asset as a financial product under the FAIS Act. This Declaration was published in the Government Gazette as well as the FSCA website" — Farzam Ehsani