Regulatory Alerts2022-10-19
Policy Document Supporting the Declaration of Crypto Assets as Financial Products under the FAIS Act
The Financial Sector Conduct Authority declared crypto assets as financial products under South Africa’s FAIS Act, requiring providers to obtain licenses or operate as representatives of licensed entities. A temporary exemption permits unlicensed crypto asset service providers to continue operations while submitting license applications between June and November 2023, provided they comply with fit-and-proper standards and the General Code of Conduct. This regulatory framework mitigates consumer risks, aligns national standards with FATF anti-money laundering recommendations to prevent grey-listing, and establishes a technology-neutral licensing regime ahead of broader financial sector legislation.
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