South African Regulator Explains Why It Has Been Targeting Global Crypto Exchanges

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South African Regulator Explains Why It Has Been Targeting Global Crypto Exchanges – South Africa’s financial sector regulator’s head of enforcement, Brandon Topham, has stated that his agency has not issued warnings to some worldwide exchanges because they deal in crypto.

The warnings were issued because the exchanges are not authorized to provide derivatives in the country.

The Financial Sector Conduct Authority (FSCA), a South African financial sector regulator, has been targeting global cryptocurrency exchanges operating in the nation because they “provide a derivative product with crypto as the underlying or reference asset,” according to an FSCA official.

The South African authority has already issued public warnings against major crypto exchange platforms such as FTX, Binance, and Bybit. Some crypto exchanges operating in the country have been compelled to shut down services as a result of the regulator’s warnings.

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Also Read: South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round

While the FSCA claims that its warnings are intended to protect the general public, some suspect that worldwide exchange platforms are being targeted because they deal with cryptocurrency.

However, Brandon Topham, the FSCA’s head of enforcement, is mentioned in a report as saying that action is being taken because the exchanges aren’t registered to offer derivatives. He elaborated:

“We’re looking into speaking with a number of non-registered over-the-counter derivative product (ODP) providers.” 

The FSCA is striving to build a regulatory framework that will protect bitcoin investors, according to the official. 

“We’re aiming to create a regulatory framework in which they may register in order to safeguard clients and legitimate players from being exploited.” “This is currently in progress,” the FSCA official explained.

Also Read: Russia Proceeds With Efforts to Legalize Crypto Amid Sanctions Over Ukraine

South Africa, the source asserted, “would be one of the most progressive countries in the world at this stage” provided the desired regulatory environment is in place.

Topham, on the other hand, argued that the regulator is not attempting to stifle the crypto industry’s growth. Instead, the FSCA stated that it wants to help the industry grow, but that it “will not hurry into this.”

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