South Africa Set to Unveil Cryptocurrency Regulatory -

South Africa Set to Unveil Cryptocurrency Regulatory Framework in 2022

A commissioner from a regulatory body said that South Africa will soon have a new regulatory framework for cryptocurrency in early 2022.

Highly Dangerous Products

The Financial Sector Conduct Authority (FSCA), South Africa’s financial regulator, is about to announce a new regulatory framework for cryptocurrency in the early 2022.

Unathi Kamlana (a commissioner with FSCA), stated that the new framework will define how trading crypto coins such as bitcoin (BTC), should be done. Kamlana said that his organization wasn’t keen to legitimize highly risky products in an interview. Kamlana stated:

We want to be able intervene when potential customers see products they don’t fully understand and that could pose a risk to their health. They must not be legitimized.

According to reports, the FSCA is drafting crypto trading rules along with other regulatory bodies. It will also look at how currencies interact with traditional financial products, and if they pose a threat for financial stability.

Cryptocurrency Do Not Pose a Systemic Risk

Kamlana still asserted that cryptocurrencies are not a threat to the stability and viability of the financial sector in his remarks. However, the commissioner stated that cryptos are assets and not currencies to the FSCA.

Kamlana encouraged South Africans to abandon digital currencies created or issued privately, as they are less stable and reliable than stablecoins issued central banks.

“I believe that retail investors should wait and see what the outcome of central bank innovation will be,” said Kamlana. Kamlana stated that the best outcome for stable coins comes from central bank innovation due to their reliability and stability.