South African Government to Add Crypto Entities to List of Accountable Institutions – Recently, the South African government announced that crypto-related enterprises will be added to the list of accountable organizations for regulatory oversight. The addition of crypto firms to this list is the result of a change to schedules 1, 2, and 3 of the Financial Intelligence Centre Act of 2001, according to a notice published by the government on November 29. Enoch Godongwana, the South African minister of finance, enacted the amendments to the Act, which will go into effect on December 19.
Godongwana specifies in the notice the categories of crypto-related activities and operations that will be put on the list of so-called accountable institutions. Individuals “exchanging a crypto asset for fiat currency or vice versa” will also be added to the list of institutions or entities. Businesses that convert one crypto asset to another or conduct transactions where a crypto asset is transferred “from one crypto asset address or account” will also be included.
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The list will be expanded to include custody service providers and issuers of crypto assets, according to the announcement. Less than two months after the Financial Sector Conduct Authority recognized crypto assets as a financial product, South Africa’s desire to add crypto firms to a list that already includes attorneys, investment schemes, and money transfer services became public knowledge.
As reported, this classification signifies that crypto asset service providers such as exchanges must now submit an application for an operating license. In the same official notice, the South African minister of finance defines what a cryptocurrency asset is from the government’s perspective.
“Where crypto asset means a digital representation of perceived value that can be traded or transferred electronically within a community of users of the internet who consider it as a medium of exchange, unit of account or store of value and use it for payment or investment purposes, but does not include a digital representation of a fiat currency or a security as defined in the Financial Markets Act, 2012,” the notice explained.
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