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South Africa declares digital assets to be financial products

MARKET_WATCH Regulation

South Africa has made a giant leap in Bitcoin regulations, with the country’s financial regulator declaring digital assets as financial products.

 

The Financial Sector Conduct Authority (FSCA) published a notice confirming that it had updated the country’s Financial Advisory and Intermediary Services Act to include digital assets.

 

FSCA defines a ‘crypto asset’ as a “digital representation of value” that applies cryptographic techniques and uses distributed ledger technology (DLT). The agency declared ‘crypto assets’ to be financial products.

The declaration is the first crucial step in digital asset regulation in the country. Regulators will now be able to formulate and implement laws to govern the sector, including enforcing anti-money laundering programs and issuing licenses to virtual asset service providers (VASPs).

 

“This was the first legal step that was required to bring the crypto asset industry within the South African legal framework,” commented Brent Petersen from the digital asset trading platform Easy Crypto.

Marius Reitz, the general manager for Africa at Luno exchange, concurs. He further pointed out that the new classification will make it easier for investors to select qualified investment advisors.

“The licensing requirements that will flow from this classification will drive high standards in the industry, particularly in relation to consumer protection, with potential investors easily able to identify those providers that satisfy regulatory requirements. Another key benefit is that it should allow financial advisers to formally advise their clients on crypto investments,” he told Bloomberg.

 

 

Source : South Africa declares digital assets to be financial products

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Automata Pay

65-66 Warwick House 4th

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Automata ICO Ltd

3rd Floor Ormond Building,

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Dublin 7, D07 Ee37

Automata Pay Europe Ltd

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Dublin 7, D07 Ee37

Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.