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News

Cryptocurrency Is Now A Financial Product In South Africa

October 20, 2022 - Around 1 mins mins to read
South Africa‘s financial markets regulator has designated cryptocurrency assets as financial products, laying the legal groundwork for regulating cryptocurrencies.
Cryptocurrency Is Now A Financial Product In South Africa
Cryptocurrency Is Now A Financial Product In South Africa 2

The Financial Sector Conduct Authority (FSCA) stated in a notification on Wednesday that cryptocurrency is not issued by a central bank but may be exchanged, transferred, and used for payments.

It also applies cryptographic techniques and distributed ledger technologies. The notification goes on to say that crypto assets have been designated as financial instruments.

A financial product is defined as a security, debenture, any money-making instrument, or an instrument giving rights to securities and instruments under the FAIS. It can be provided by South African-licensed financial service companies, whether domestic or foreign.

Governments and authorities around the world have increased their scrutiny of the new asset class, a trend that has intensified since the multibillion-dollar collapse of the Terra-LUNA stablecoin project in May.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

crypto

Financial Product

FSCA

South Africa

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Cryptocurrency Is Now A Financial Product In South Africa

South Africa‘s financial markets regulator has designated cryptocurrency assets as financial products, laying the legal groundwork for regulating cryptocurrencies.
Cryptocurrency Is Now A Financial Product In South Africa
Cryptocurrency Is Now A Financial Product In South Africa 4

The Financial Sector Conduct Authority (FSCA) stated in a notification on Wednesday that cryptocurrency is not issued by a central bank but may be exchanged, transferred, and used for payments.

It also applies cryptographic techniques and distributed ledger technologies. The notification goes on to say that crypto assets have been designated as financial instruments.

A financial product is defined as a security, debenture, any money-making instrument, or an instrument giving rights to securities and instruments under the FAIS. It can be provided by South African-licensed financial service companies, whether domestic or foreign.

Governments and authorities around the world have increased their scrutiny of the new asset class, a trend that has intensified since the multibillion-dollar collapse of the Terra-LUNA stablecoin project in May.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News