South Africa Dispute Resolution Office Now Takes. Crypto-Related Complaints

Key Points:

• Individuals having concerns about crypto-related issues that happened after October 19, 2022, can now formally lodge such complaints on the agency’s website, according to South Africa’s Office of the FAIS Ombud.
• The Office of the FAIS Ombud emphasized, however, that no complaints that were filed before to the designation of crypto assets as financial products will be taken into consideration and should not be presented again.

According to the Financial Advisory and Intermediary Services (FAIS) Act, the South African government agency in charge of looking into and resolving complaints has recently announced that it is now able to investigate complaints against existing registered financial service providers who offer advice on cryptocurrency.

The recent classification of cryptocurrency assets as financial goods, according to the organization known as the Office of the FAIS Ombud, has made this feasible.

Investors in South African virtual asset service providers (VASPs) may now register complaints with the nation’s financial dispute resolution authority.

“The Office can investigate complaints against existing registered financial service providers who offer advice on cryptocurrency. These providers need to comply with all the requirements of the Code, such as material disclosures, conducting a needs analysis, and recommending a product that is appropriate to one’s needs and circumstances,” the Office of the FAIS Ombud announced.

Earlier in October, the Financial Sector Conduct Authority (FSCA) declared that digital assets now came within the umbrella of financial goods. Since Bitcoin was now officially recognized as a form of payment in the nation for the first time, standard financial laws may now be applied to the sector.

The dispute resolution body stated in a news story posted on its website that complaints about cryptocurrencies can only be made against registered financial service providers (FSPs), who are required to abide by the nation’s General Code of Conduct for Authorized FSPs. According to this law, material disclosures needs analysis, and product recommendation that is suited to one’s requirements and circumstances are required.

According to Thuso Ngwagwe, a spokeswoman for the FAIS Ombud, the office has been receiving Bitcoin complaints but has been forced to dismiss them.

The Office of the FAIS Ombud recommends anybody with complaints that come under its purview go to its webpage and file a formal complaint.

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