According to the South African government, crypto entities — or crypto assets Businesses carrying out activities involving the exchange or transfer of A business that conducts a transaction that converts one crypto asset into another crypto asset, or that transfers a crypto asset from one crypto asset address or account to another crypto asset address or account” is also added.
Amendments to the Financial Information Center Act
The South African government recently added those who run crypto-related businesses to the list of bodies accountable for regulatory coverage. announced. The addition of cryptocurrency businesses to this list follows amendments to Schedules 1, 2 and 3 of the Financial Information Center Act of 2001, according to a government notice dated November 29. 19 was created by South African Finance Minister Enoch Godongwana.
In notice, Godongwana lists the types of crypto-related activities and operations included in the list of so-called responsible agencies. Also, among the institutions and entities to be included are those who “exchange crypto assets for fiat currency and vice versa.”
Businesses that convert one crypto-asset into another or conduct transactions to transfer crypto-asset “from one crypto-asset address or account to another crypto-asset address or account” have also been added. increase. Individuals or companies that provide custody services or issue crypto assets will be added to the list, the notice said.
No definition of crypto assets in Financial Markets Act
South Africa’s intention to add crypto entities to a list that includes lawyers, investment schemes, and remittance businesses was revealed by him. was less than two times. Months after crypto-assets were designated as financial instruments by the Financial Sector Conduct Office. As reported by Bitcoin.com News, this designation means that cryptocurrency service providers such as exchanges will need to apply for a license to operate.
Meanwhile, in the same government notice, the South African Finance Minister also outlined what constitutes crypto-assets from the government’s perspective.
“Crypto-asset means a digital representation of perceived value that can be traded or transferred electronically within a community of users of the Internet and can be converted into a medium of exchange, unit of account, or value. be considered the storage and use of any payment or investment purposes, but does not include a digital representation of fiat currency or securities as defined in the Financial Markets Act 2012,” the notice explains.
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