South Africa’s financial watchdog has classified cryptocurrency assets as financial products, a notice in the government gazette said on Wednesday, enabling them to be regulated., Reuters reported
In the brief notice, the Financial Sector Conduct Authority (FSCA) said a crypto asset, which it referred to as “a digital representation of value”, must be regulated in South Africa from the date of publication.
Regulations that the authorities have said they planned to introduce include applying foreign exchange controls and licensing crypto trading companies.
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.