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A commissioner of the regulator said that by early 2022, South Africa will have a new regulatory framework covering cryptocurrencies.
High-risk products
South Africa’s financial sector regulator, the Financial Sector Conduct Authority (FSCA), will announce a new regulatory framework in early 2022 that covers cryptocurrencies.
According to FSCA Commissioner Unathi Kamlana, the new framework will determine how cryptocurrencies are traded Bitcoin (BTC) It should be done.In his speech interviewKamlana stated that his organization is not keen on legalizing high-risk products. The members said:
When we think that the products provided to potential customers are potentially high-risk products that they do not understand, we hope to be able to intervene. We must be very careful not to just legalize them.
According to reports, the FSCA is working with other regulatory agencies to draft cryptocurrency trading rules and will also examine how currencies interact with traditional financial products and whether these products pose a threat to financial stability.
Encryption does not constitute a systemic risk
Nevertheless, Kamrana asserted in his speech that cryptocurrency has not yet constituted a systemic risk to the stability of the financial services industry. However, the commissioner stated that the FSCA treats cryptocurrencies as assets rather than currencies.
At the same time, in keeping with the positions taken by several countries, Kamrana urges South Africans to avoid privately issued/created digital currencies that are not as stable and reliable as stable currencies issued by central banks.
“I think if I want to provide advice to retail investors, I will say wait and see what results the central bank’s work process will produce. Considering the reliability and stability of stablecoins, the best result for stablecoins is the central bank The result of innovation,” Kamlana said.
What do you think of the story about the regulatory framework for digital assets in South Africa? Tell us what you think in the comments section below.
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