South Africa’s Ministry of Finance said it will include cryptocurrency service providers as accountable bodies in the Financial Intelligence Centre (FIC) Bill, which is expected to be finalized this year.
In the meantime, South Africa is attempting to analyze "significant weaknesses in South Africa's AML/CFT system" identified by the Financial Action Task Force (FATF). The proposed amendment to the FIC Act, which has been open for public consultation, is in line with the norms proposed by the FATF, the South African Ministry of Finance mentioned in its latest review document.
The latest comments on cryptocurrencies from South Africa’s Ministry of Finance follow a paper by the Intergovernmental Financial Technology Working Group (IFWG) calling for regulation of cryptocurrencies. The South African Ministry of Finance also stated that cryptocurrencies are expected to be considered financial commodities under the Financial Advisory and Intermediary Services Act (FAIS). The purpose of this statement is to protect consumers.
According to the document, anyone who provides cryptocurrency-related advice or intermediary services under the Act is considered a financial services provider and is subject to the Act’s requirements. This would include cryptocurrency exchange platforms and companies. This work will be completed in 2022. The document also indicates that in the Stablecoin space, the IFWG will also publish a document later this year to focus on the risks posed by the asset.
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