After a hard time with crypto scams, South Africa’s Financial Sector Conduct Authority (FSCA) is now planning to unveil regulations to govern the trading of cryptocurrencies in 2022.
According to reports, a commissioner of FSCA, Unathi Kamlana, indicated that the framework will be available for review and publication in the first half of 2022 and aiming to shield vulnerable people in society.
“What we want to be able to do is to intervene when we think that what is provided to potential customers are products that they don’t understand that are potentially highly risky.”
– South Africa’s FSCA Commissioner
While many people across the continent have been taken advantage of as cryptocurrencies blew up in popularity, South Africa has been at the center of some of the more high profile scams.
These scams include:
- Mirrror Trading International (MTI) – A crypto trading fund which vanished with $581 million worth of investments
- AfriCrypt – A crypto investment scheme which claimed digital wallets holding funds collected from clients were hacked in April 2021 with bitcoins worth 40 billion Rand vanishing
The distress caused by these scams led authorities to fast-track scrutiny in the sector as they insisted there was little assistance they could offer to innocent people who had lost their funds.
According to reports, the FCSA is also aiming for its framework to address how crypto interacts with traditional finance products and balance sheets and the threat they may pose to financial stability.
According to the Commissioner, crypto investors should ‘wait and see’ on South Africa’s Reserve Bank (SARB) CBDC progress.
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