South Africa Classifies Crypto Assets as Financial Products
South Africa has declared crypto assets to be a financial product, according to a new notice from the country’s Financial Sector Conductor Authority.
The change brings digital assets under the purview of South Africa’s regulators.
The notice defines a crypto asset as a “digital representation of value” that is not issued by a central bank but can be traded, transferred or stored electronically “for the purpose of payment, investment and other forms of utility.”
The change, which takes effect immediately and falls under the Financial Advisory and Intermediary Services Act, 2022, comes as countries around the world are moving to regulate cryptocurrencies more strictly, particularly amid the recent volatility in prices and the collapse of several important crypto firms.
The deputy governor of South Africa’s central bank said this summer the bank had come to view cryptocurrency as a financial asset and was looking into regulating the sector.