Regulation on Crypto Assets

In general notice 1350 of 2022, effective as of 19 October 2022, the FSCA has formally declared a crypto asset as a financial product under the Financial Advisory and Intermediary Services Act, 2002.  

The declaration marks the first step in crypto asset regulation, in South Africa, and follows a draft declaration published in 2020 and a position paper issued in 2019

The effect of the regulation is that any person that provides financial advice or intermediary services in respect of crypto assets, will now need to register as a financial service provider (FSP) under the FAIS Act.  Once registered as an FSP, these providers may in turn be required to register as accountable institutions under the Financial Intelligence Centre Act, 2001.

If your business renders services in relation to crypto assets, speak to either Desiree Reddy (desiree.reddy@nortonrosefulbright.com) or Ntokozo Ngubane (ntokozo.ngubane@nortonrosefulbright.com) to assess the impact of the declaration on your business going forward.

First published by: Financial Institutions Legal Snapshot