South African financial regulator plans to introduce a framework designed to protect vulnerable crypto investors: report

According to reports, Unathi Kamlana, director of the South African Financial Sector Conduct Authority, stated that the government launched an encryption framework to reduce any potential risks.

According to a Bloomberg report on Friday, Kamrana Say Financial regulators plan to propose a regulatory framework in early 2022 to protect investors from “potentially high-risk” crypto assets. The commissioner stated that any encryption framework will be created in coordination with the South African Reserve Bank’s Prudential Regulation Authority and the Financial Supervisory Commission.

“When we think that the products we provide to potential customers are potentially high-risk products that they don’t understand, we want to be able to intervene,” Kamlana said. “We must be very careful not to just legalize them.”

Before the FSCA Commissioner’s comments, the South African Intergovernmental Fintech Working Group stated in June that Will lay the foundation South Africa’s “phased and structured” regulation of cryptocurrencies. The encryption policy of this African country is largely a non-interference policy, but it also warns the public that the government has little protection or recourse against fraud or fraud.

When the co-founder of South African crypto investment platform AfriCrypt allegedly Billions of user funds disappear, FSCA stated that it could not take action because encrypted assets are not regulated in the country.After receiving the warning, the major cryptocurrency exchange Binance also Challenge the authority of FSCA As South Africa’s financial regulator, he argued that the country’s financial intelligence center ensures that crypto companies comply with local laws.

related: The South African Asset Management Corporation denied that it had stolen billions of dollars from users and claimed that it had lost $5 million in hacking attacks.

In May, the South African Reserve Bank Started an exploratory study Launch of central bank digital currency or CBDC.The central bank is also Part of the pilot program Try to use CBDC for international settlement with people in Australia, Singapore and Malaysia.