South Africa, the southernmost tip of the African continent, has classified crypto assets to be a financial product, according to an information from the country’s Financial Sector Conduct Authority.
This development brings digital assets more under the purview of South Africa’s regulators.
The notice describes 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 recent increase in volatility of these digital assets have led to severe regulations of the same by different countries.
This is the same reason for the latest development in South Africa, as the recent change which takes effect immediately and falls under the Financial Advisory and Intermediary Services Act, 2022, is not far from crypto regulations.
Meanwhile, the deputy governor of South Africa’s central bank revealed this summer that the bank had classified cryptocurrency as a financial asset and was looking into regulating the crypto ecosystem.