The South African Financial Sector Conduct Authority (FSCA) has resolved to regulate cryptocurrency and classify it as a financial product with a digital representation value in the country.
FSCA in a statement said referred to it as “a digital representation of value”, that must be regulated in South Africa from the date of publication.
As part of the regulation, the FSCA said it planned to introduce the application of foreign exchange controls and licensing crypto trading companies.
ALM recalls that Financial watchdogs across the globe have been grappling with how to regulate new digital currencies and tokens, the prices of which have fallen since November last year.
Crypto assets are not issued by a central bank but are capable of being traded, transferred or stored electronically.
