The CryptoAssets Association represents the interests of South African users and businesses innovating with crypto assets, who share a need for clarity and certainty in legislation, balanced against a desire for efficiency and waste avoidance in terms of unnecessary spending.
We consider the terms “crypto assets”, “crypto-assets”, “cryptoassets” equivalent.
We use “CryptoAssets” to refer to ourselves, and “crypto assets” to refer to the topic.
Background
2019
The South African Reserve Bank published a position paper on virtual currencies in 2014.
On 16 January 2019 they reviewed their earlier stance and published a set of proposed regulations.
There is also a FAQ entry maintained here.
On a related note, SARS have published comment too.
According to the press release we have until 15 February 2019 to submit a response to the given address, which was tested on 17 January 2019, and confirmed working with a human reply by 24 January 2019.
2020
On 15 April 2020, a news report refers to a new version of the working paper which has been uploaded for viewing here.
The National Treasury has published a media statement and a copy of the position paper.
The Intergovernmental Fintech Working Group (IFWG) has issued a press release linking to a download of the position paper.
On 20 November 2020 the Financial Sector Conduct Authority (FSCA) published a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act (FAIS). Download draft (zip file).
2021
On 11 June 2021 the Intergovernmental Fintech Working Group (IFWG) announced the publishing of the Crypto Assets Regulatory Working Group IFWG’s CAR WG Position Paper on Crypto Assets, and confirmed that crypto assets will be brought into the South African regulatory purview in a phased and structured manner. Press release here.
Be sure to review their updated FAQ for crypto assets questions. There is also a separate crypto assets FAQ in PDF format here: Frequently asked questions about crypto assets
2022
On 19 October 2022, “crypto assets” were declared a financial product under the Financial Advisory and Intermediary Services Act via Government Gazette notice 1350 of 2022.
On 20 October 2022 the Financial Sector Conduct Authority (FSCA) issued a press release.
There is a fresh round of public comment due promptly, on the exemptions:
To facilitate the application of an appropriate regulatory framework for Crypto Asset FSPs once licensed, the FSCA also published a Draft Exemption of Persons rendering Financial Services in relation to Crypto Assets from Certain Requirements.
You can download the information pack and submit comments as follows:
The draft General Exemption has been published for public comment pending finalisation, to solicit stakeholder inputs on the proposed regulatory framework that will apply to licensed Crypto Asset FSP’s. Submissions on the draft Exemption must be made using the submission template available on the FSCA’s website and be submitted in writing on or before 1 December 2022 to the FSCA at FSCA.RFDStandards@fsca.co.za.
On 30 November 2022 finance minister Enoch Godongwana amended the Financial Intelligence Centre Act (FICA), designating crypto asset service providers as “accountable institutions”. Read the press release.
2023
In January 2023 the Office of the FAIS Ombud announced they would accept complaints against existing registered financial services providers. Press release.
Use the ‘Lodge a Complaint’ button on their website to get started.
This page will be updated with more information when available.