FIC finalizing new crypto regulations as FSCA investigates unlicensed operators
As crypto assets are being used more widely around the world, including in South Africa, government agencies have their work cut out for them when it comes to regulating them. From taxing crypto to preventing it from being used for crime, regulating the asset class is far from simple,
Just recently, the FIC put out its draft of the ‘Travel Rule’ which would require that crypto service providers reveal a certain amount of information regarding the senders to the receiver’s own service provider such as name and address. For cross-border transactions, information of both the sender and the receiver must be provided and checked for accuracy, unless it is under R5,000 in value.
The same can be said of gambling. Traditional gambling sites require some level of information from users and these can be demanded by the government. But using crypto, some opt for an anonymous casino that will not even ask for their name. Needless to say, this is not a clear-cut situation.“The FIC is in the process of assessing all comments with a view to finalizing a final version of the directive, taking into account relevant comments.
In the event that customers have a dispute with the provider or some malpractice takes place, there is a regulatory body they may turn to for help. This is why such unlicensed crypto service providers continuing to operate is a major issue and one that the FSCA is looking to tackle.
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