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Lawyer of the Ombudsman for the implementation of the FAIS bill in South Africa, Nonkumbulo Tshombe, called for accelerating the development of cryptocurrency regulation in the country due to the growth of fraud.
Nonkumbulo Tshombe reported that since 2020, the Office of the Financial Advice and Intermediary Services (FAIS) Bill Implementation Ombudsman in South Africa has recorded a significant increase in complaints from users who have tried to invest in cryptocurrencies. However, Tshombe noted that the organization cannot accept these claims since South Africa has yet to develop cryptocurrency regulation.
“Crypto assets are not classified as a financial product. This means that they are not within the scope of our powers, ”explained the lawyer.
Despite the fact that South Africa lacks clear rules for regulating cryptocurrencies, the Financial Sector Regulatory Authority of South Africa (FSCA) is trying to take action against organizations and individuals dealing with digital assets. The FSCA has repeatedly warned the public about the risks of investing in cryptocurrencies. The ministry’s statements have become more frequent after the closure of the fraudulent scheme Mirror Trading International, which collected 23,000 BTC worth more than $ 700 million. Due to the tightening requirements of the South African regulator, this fall, the Binance cryptocurrency exchange was forced to stop trading derivatives in the country.
Tshombe noted that South Africa is already taking some steps towards creating a regulatory framework for overseeing cryptocurrency activities. Last year, the FSCA proposed to designate digital currencies as financial products. In addition, FSCA Commissioner Unathi Kamlana recently announced that the agency will pay special attention to the development of cryptoasset regulation next year, including other agencies.
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