A Commissioner with the regulatory body (FSCA) claimed today that a regulatory framework will be unveiled in the early 2022 in South Africa that will cover the regulation of the cryptocurrency. According to the regulatory body, the cryptocurrency assets are not stable and are highly risky and thus the organization is not keen on legitimizing such highly risky products.
Unathi Kamlana , a commissioner with Financial Sector Conduct Authority (FSCA) claimed that a new regulatory framework will be introduced in the early 2022 that will cover the regulation of cryptocurrencies. According to her, the framework will determine how the crypto assets will be traded in the country. She in an interview said –
“What we want to be able to do is to intervene when we think that what is provided to potential customers are products that they don’t understand that are potentially highly risky. We must be very careful to not just legitimize them.”
The FSCA has been devising the cryptocurrency regulation bill with other concerning authorities and regulators in South Africa to understand the impacts of interaction of cryptocurrencies with other financial assets in the country and to ensure that the people are discouraged to invest in such highly risky and unstable assets.
Also, the regulatory authority is of the opinion that the crypto will never be considered as a currency though there is a chance of them to be regulated as assets for trading. The regulator also urged the South African people to invest in the digital coin that will be launched by the Government as it will be more stable and least risky.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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