South African Regulator to Unveil Consumer Protection Rules at the begining of 2022

The South African Financial Sector Conduct Authority (FSCA) is on the right track to unveil an encompassing regulatory framework, aiming at protecting people who emanate within the digital currency ecosystem from scams.

Based on a Bloomberg report, citing the confirmation from the plans from regulator’s commissioner Unathi Kamlana, it is also noted the regulator wants a method where it may control fallouts from dangerous cryptocurrency investments.

With intentions of track to produce the rules in early stages in next season, Kamlana stated all suggested rules is going to be formulated in close consultation using the Prudential Authority and Financial Surveillance Board from the South African Reserve Bank.

“What we would like so that you can do would be to intervene whenever we believe that what’s presented to prospective customers are items that it normally won’t realize that are potentially highly dangerous,” stated Kamlana. “We must be cautious not to just legitimize them.”

Nigeria is really a nation which has seem a hub for digital currency innovations, however, some actors have cheated the country’s benevolence. In June, Blockchain.News reported around the disappearing from the operators from the South African crypto buying and selling platform, AfriCrypt which saw about $3.6 billion of user’s funds. Once the incident happened, the FSCA stated its hands were tied because the nascent asset class remains unregulated in the united states.

The regulator also were built with a brawl with Binance a couple of several weeks when the exchange was charged with operating unlawfully in the united states. Binance, that has had challenges along with other regulators all over the world challenged the authenticity from the FSCA, saying it matches the neighborhood rules based on the South African Financial Intelligence Center.

Should Nigeria issue the suggested rules, it will require a forward-thinking path in which digital currency ecosystem can thrive. Global industry stakeholders are promoting and open-minded to progressive rules and there’s bound to become a welcome reception within the South African blockchain ecosystem.