South Africa: Policy Document supporting the Declaration of Crypto Assets as a Financial product

On 19 October 2022, the Financial Sector Conduct Authority (FSCA) published a policy document supporting the Declaration of a crypto asset as a financial product under the Financial Advisory and Intermediary Services Act. In its policy document, the FSCA outlines the service providers' obligations and clarifies the conditions for obtaining a licence. The FSCA will regulate providers of financial services related to crypto assets and require traders of cryptocurrencies and other digital assets to obtain a license to operate. The providers that don't hold a financial services licence will be allowed to continue to operate if they apply for a licence between 1 June 2022 and 30 November 2023. In case of non-compliance, providers of financial services related to crypto assets face a fine of ZAR 10 million or imprisonment for a maximum of 10 years.