South Africa’s Financial Conduct Authority (FSCA) Considers Declaring Crypto Assets as Financial Products
South Africa’s Financial Conduct Authority (FSCA) is considering declaring crypto-assets as financial products, which would give it jurisdiction over these transactions following the latest scam Africrypt, according to iol news. the FSCA said yesterday that it is investigating whether financial products or services were offered to the public, which would require Africrypt to register with the authority, but at this stage it has only found evidence of crypto-asset trading, which is not regulated by any financial sector laws in South Africa. In addition to potential concerns about the suitability of crypto-assets as an investment asset class, the FSCA is also concerned about the large number of scams being perpetrated due to the lack of a potential business model and the risk of large swings in market prices in most cases. Many of these entities are typically not based in South Africa or have poor security to protect crypto assets acquired by the public and theoretically held on behalf of their clients. This follows news that the founder of crypto platform Africrypt may have absconded with $3.6 billion worth of BTC, a matter that has been reported to the Financial Sector Conduct Authority (FSCA), Hawks and the SA Reserve Bank.