South Africa

South African regulator may license 36 crypto companies in December

The Financial Sector Conduct Authority reviewed 128 applications from crypto service asset providers.

South Africa’s principal financial regulator, the Financial Sector Conduct Authority (FSCA), reviewed 128 applications from crypto service asset providers (CASPs) but intends to discuss only 36 during its next meeting in December. 

The numbers were published on Nov.

The fate of all the remaining applications wasn’t specified by the Authority, which explained its evaluation method as the combined assessment of Know Your Customer onboarding, data protection, cyber risk management, conflict of interest management, complaints handling, and credit counterparty risk management.

The FSCA also published its “Crypto Assets Markets Study” for 2023 on the same day, Nov.

Related: Kenyan lawmakers ask local Blockchain Association to come up with crypto bill

According to the survey, the average crypto asset provider in South Africa (46%) has an annual revenue of between 1 and 50 million South African rand ($53,000 to $2.7 million).

Source: The Crypto Assets Markets Study 2023

The highest monthly transaction value on the South African crypto market was recorded in November 2022, when it peaked at over 8 billion rand (around $427 million).

In July 2023, the FSCA warned that any CASP in the country should obtain a license by the end of the year.

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Crypto exchange Roqqu receives South African approval to expand operations

Nigerian crypto exchange Roqqu has received the green light to operate in South Africa, providing on and off-ramps to South Africa’s rand currency.

Nigerian crypto exchange Roqqu has been granted regulatory approval to operate in South Africa, allowing users to purchase cryptocurrencies and withdraw funds with the country’s fiat currency, the South African rand, according to local media reports.  

South Africa has been a top priority for Roqqu as the exchange seeks to expand its dominance in the African market. In a previous interview with Cointelegraph, the company ranked South Africa as a focal point for its growth plans, which includes reaching 5 million clients in 2023.

Roqqu has its sights set on Ghana, Uganda, Kenya and Tanzania for regional expansion in the near future. 

Roqqu claimed to have over 1.4 million active customers as of January, when it also received a virtual currency license for the European Economic Area, effectively giving it the green light to operate in over 30 countries. It took two years for the exchange to receive permission from the region’s regulatory authorities.

The exchange’s strategy centers on facilitating cross-border transactions through cryptocurrencies, primarily in African countries. According to Roqqu CEO Benjamin Onomor, “Africans who live and work in [the] diaspora send over $5 billion yearly back home; they do so with so much stress and have to wait days in some cases before the funds get to their family members in Africa.” He continued: “This is an issue as many families depend on this remittance for critical needs such as food and shelter.”

Data from Chainalysis shows that the Middle East and North Africa is the fastest-growing region in the world for crypto adoption, transacting over $566 billion in cryptocurrencies between July 2021 and June 2022, up 48% from the previous year.

Cointelegraph recently reported that Africa’s crypto-focused startups raised $474 million in funds last year, a 429% jump from the $90 million figure in 2021. The growth in capital flows surpassed the global average, which only saw a 4% increase in blockchain funding in 2022.

Magazine: Bitcoin in Senegal: Why is this African country using BTC?

African blockchain ventures outpace global funding growth: Report

Africa witnessed a 429% YoY increase in venture funding in 2022, with the majority of funding coming from Seychelles and South Africa.

The African continent continues to be a fertile ground for the growth and implementation of blockchain technology.

According to the 2022 “African Blockchain Report” by CV VC, blockchain deals in Africa raised a total of $474 million in 2022, representing a 429% increase from the $90 million raised in 2021. This growth in funding far surpassed the global average, which only saw a 4% increase in blockchain funding.

According to the report, African blockchain funding demonstrated a growth rate that was over 12.5x higher than that of general African venture funding on a year-on-year basis. Overall African venture funding saw just a 34% increase, with $3.14 billion raised across 570 deals.

Africa experienced the highest growth rate in funding globally, while the United States remained steady at $15.2 billion in funding and Asia and Europe saw YoY increases of 50% and 35% with $4.74 billion and $4.88 billion in funding, respectively.

African blockchain venture funding by countries. Source: CV VC

Last year, Seychelles and South Africa were responsible for 81% of the blockchain venture funding in Africa, having raised $208 million and $177 million, respectively. Moreover, the total number of African blockchain deals increased by 12% YoY, from 26 to 29.

African blockchain venture funding made up 1.77% of global blockchain venture funding, which saw an impressive 407% YoY increase, with several countries contributing to the surge. By comparison, the U.S. concluded 137 deals while Asia and Europe had 84 and 78, respectively.

Related: Web3 economy to gain more traction in Africa through DeFi-based financial inclusion

Nigeria was the frontrunner when it comes to the number of blockchain startups receiving funding, followed by South Africa, Seychelles and Kenya. However, despite Nigeria having the highest number of deals on the continent in 2022, it only accounted for 3.4% of all African blockchain venture funding, with an average deal size of $1.25 million.

Taking into account the substantial increase in blockchain funding in Africa and the fact that there was a relatively small increase in the number of blockchain deals shows that the median deal size has significantly risen. This suggests that businesses are securing more substantial funding and investors are becoming more confident in African blockchain ventures.

Magazine: Bitcoin in Senegal: Why is this African country using BTC?

Russia talks up prospects of BRICS countries developing new currency

A top Russian official has reportedly claimed that the countries of the BRICS alliance — Brazil, Russia, India, China and South Africa — are working on creating their own currency.

A new world order could be emerging as economic powerhouses increase their efforts to distance themselves from US dollar hegemony.

According to reports, a top Russian official has claimed that the BRICS alliance is working on creating its own currency. BRICS is an acronym for five leading emerging economies: Brazil, Russia, India, China and South Africa.

State Duma Deputy Chairman Alexander Babakov made the comments at the St. Petersburg International Economic Forum event in New Delhi, India, according to local reports.

Babakov reportedly stressed the importance of both nations working towards a new medium for payments, adding that digital payments could be the most promising and viable.

He also said the currency could benefit China and other BRICS members, and not the West.

“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”

Babakov also reportedly postulated that the new currency would be secured by gold and other commodities such as rare-earth elements.

Countries in the grouping. Source: Library of Congress

This week, former Goldman Sachs chief economist Jim O’Neill called on the BRICS bloc to expand and challenge the dominance of the dollar. In a paper published in the Global Policy journal, he wrote that “the U.S. dollar plays a far too dominant role in global finance.”

A BRICS currency is not a new concept. In 2019, Cointelegraph reported that members of the bloc were discussing the creation of a new digital currency for a unified payments system.

Related: 5 ways CBDCs could impact the global financial system

In a related development this week, China and Brazil reached a deal to trade in their own currencies. The move will remove the U.S. dollar as the intermediary, further empowering both nations to distance themselves from the world’s reserve currency.

According to reports, the agreement will enable China and the biggest economy in Latin America, Brazil, to conduct trade and financial transactions directly. Chinese yuan will be exchanged directly for the Brazilian real and vice versa instead of going through the greenback.

China is racing ahead with its central bank digital currency project, and crypto adoption in Brazil is growing following the legalization of it as a payment method in the country late last year. Meanwhile, Uncle Sam remains determined to continue its war on crypto as financial regulators tighten the screws on the embryonic industry.

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Nigeria CBDC adoption spikes as fiat currency shortage grip the nation

The acute cash shortage in Nigeria was due to the central bank’s decision to replace older bank notes with bigger denominations amid rising inflation.

Nearly 18 months after launching its in-house central bank digital currency (CBDC), the eNaira, Nigeria is seeing increased adoption in the CBDC as national fiat reserves face severe shortages. 

The acute cash shortage in Nigeria was due to the central bank’s decision to replace older bank notes with bigger denominations amid rising inflation. While developing nations were among the first to acknowledge the importance of a CBDC in revamping fiat capabilities, the idea is yet to materialize.

However, the lack of physical cash forced Nigerians to use the eNaira. In a country where cash accounts for about 90% of transactions, the value of eNaira transactions increased 63% to 22 billion nairas ($47.7 million), revealed a Bloomberg report.

Moreover, according to Godwin Emefiele, governor of the Central Bank of Nigeria, the total number of CBDC wallets grew more than 12 times compared with October 2022 and is currently at 13 million.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

The demonetization reduced the circulating cash supply from 3.2 trillion nairas to 1 trillion nairas. Compensating for this decline, Nigeria minted over 10 billion eNairas. In addition, eNaira payouts in government initiatives and social schemes also contribute to the increase in CBDC’s adoption.

For developing countries, CBDCs present a way to overcome challenges presented by the fiat economy, which includes reducing operating costs and strengthening Anti-Money Laundering initiatives.

“The eNaira has emerged as the electronic payment channel of choice for financial inclusion and executing social interventions,” concluded Emefiele.

Related: eNaira is ‘crippled‘: Nigeria in talks with NY-based company for revamp

Amid the cash crunch, Nigerians have been presented with another option for procuring cryptocurrencies. MetaMask’s parent firm ConsenSys recently announced a new MoonPay integration, which allows Nigerians to purchase crypto via bank transfers.

Screenshot showing option to buy crypto using fiat. Source: ConsenSys

As shown in the above screenshot, the new feature is available within the MetaMask mobile and Portfolio DApp, significantly simplifying buying crypto without using credit or debit cards in Nigeria.

Retail giant Pick n Pay to accept Bitcoin in 1,628 stores across South Africa

Grocery retailer Pick n Pay is now accepting Bitcoin payments via the Lightning Network nationwide following a three-month testing phase.

South African grocery retailer Pick n Pay is now accepting Bitcoin (BTC) in all of its 1,628 stores following a three-month pilot testing phase in 39 locations. 

As part of its nationwide rollout, store customers will be able to pay for items using cryptocurrency via smartphone apps or by scanning a QR code and accepting the South African rand’s conversion rate at the time of payment.

To pay with BTC, customers will need a Bitcoin Lightning Wallet and the CryptoQR scanner app from CryptoConvert, which is linked to the Bitcoin Lightning Wallet. The payment process requires users to scan an item’s QR code through the CryptoQR app and then proceed to the Lightning Wallet to confirm the rate and complete the transaction.

Related: South African crypto landscape primed for TradFi growth after FSCA ruling

Twitter users shared their experience with using Bitcoin to pay for everyday items at Pick n Pay stores:

The move came after the country’s financial regulator, the Financial Sector Conduct Authority (FSCA), amended its financial advisory legislation in October to classify crypto assets as financial products, bringing cryptocurrencies under regulation for the first time in South Africa and allowing financial service providers to offer crypto-assets both domestically and internationally.

The retail chain disclosed plans to roll out crypto payments nationwide in November, after years of piloting the service in selected stores. A first experiment with cryptocurrencies took place in 2017, when the company began accepting Bitcoin as a form of payment in Cape Town, but transaction costs and wait times hindered the process.

During its pilot program, Pick n Pay partnered with Electrum and CryptoConvert to enable customers to pay via the Bitcoin Lightning Network, a second layer added to Bitcoin’s blockchain that allows off-chain transactions

Among the African nations, South Africa appears to be making considerable progress in adopting cryptocurrency. South Africa ranks 30th globally in terms of cryptocurrency adoption according to Chainalysis’ 2022 Global Crypto Adoption Index. It has been estimated that about 10% to 13% of the South African population holds crypto assets.

South Africa adds new cryptocurrency standards to advertising code

Cryptocurrency products and services feature in a new clause in South Africa’s code of advertising practice introduced by the Advertising Regulatory Board.

South Africa’s Advertising Regulatory Board (ARB) has included a new clause for the cryptocurrency industry aimed at protecting consumers from unethical advertising.

Companies and individuals in South Africa must abide by certain advertising standards pertaining to the provision of cryptocurrency products and services in a new clause introduced to Section III of the country’s advertising code.

The first clause requires that adverts, including cryptocurrency offerings, must ‘expressly and clearly’ state that investments may result in the loss of capital ‘as the value is variable and can go up as well as down.’ Furthermore, adverts must not contradict warnings about potential investment losses.

Advertising for particular services and products must be explained in an ‘easily understandable’ manner for intended audiences. Adverts must also give balanced messages around returns, features, benefits and risks associated with the associated product or service.

Rates of returns, projections or forecasts must also be adequately substantiated, including how these are calculated and what conditions apply to touted returns. Any information relating to past performance cannot be used to promise future performance or returns, and should not be presented in a way that creates ‘a favourable impression of the advertised product or service.’

Adverts from cryptocurrency service providers that are not registered credit providers should not encourage the acquisition of cryptocurrencies using credit. However this does not preclude the advertising of associated payment methods provided by service providers.

Social media influencers and brand ambassadors will also be expected to comply with certain advertising standards. This includes being required to share factual information while being prohibited from offering advice on trading or investing in crypto assets and the prohibition of promises of benefits or returns.

Cryptocurrency exchange Luno, a prominent service provider in South Africa, spearheaded the project with the ARB. Luno’s GM for Africa Marius Reitz told Cointelegraph the exchange approached the regulatory body to develop new rules alongside major players in the local crypto industry.

Related: Central African Republic eyes legal framework for crypto adoption

Reitz said that the industry is looking to take a self-regulatory approach and that consumers should be cognisant of risks involved in cryptocurrency investing. Scams and frauds have preyed on unsuspecting investors in the country, necessitating an effort to ‘clean up the industry’ by making it more difficult for scammers to operate:

“Media platforms are understandably looking for advertisers, but we were concerned that they weren’t doing sufficient due diligence on whether advertisers were above board.”

A statement shared with Cointelegraph from ARB CEO Gail Schimmel highlighted her belief that the project would result in better protections for ‘vulnerable consumers’ in South Africa:

“This is a wonderful example of an industry that sees the harm that could be done in its name, and steps up to self-regulate the issues without being forced to do so by government.”

Cryptocurrency investors globally have fallen prey to some major scams in recent years. In South Africa, Mirror Trading International grabbed headlines through 2020 and 2021 as its CEO Johan Steynberg fled the country with sole control of wallets containing around 23,000 Bitcoin (BTC) belonging to thousands of investors.

Africrypt was another South African investment scheme that turned sour on investors in 2021, with brothers Raees and Ameer Cajee claiming that a hacking incident had led to the loss of some $200 million worth of cryptocurrencies being managed by the fund.

How to build a Bitcoin Beach: Advice from the pros

Founders of Bitcoin Beach El Salavdor, Bitcoin Ekasi in South africa, Dakar Bitcoin Days in Senegal and Global Bitcoin Fest shed light on building Bitcoin communities around the world.

How does one build a Bitcoin (BTC) community? How to start? Where to begin? And what are the best practices? 

Cointelegraph spoke to Bitcoin community builders around the world to shed light on a growing phenomenon in the Bitcoin world.

From Indonesia to South Africa to El Salvador and the Congo, circular-based Bitcoin economies and community projects have sprung up across the globe. Cointelegraph asked the successful community-focused Bitcoiners how to kickstart a Bitcoin circular economy and what advice they’d lend to enthusiasts looking to replicate the success of projects like Bitcoin Beach, El Zonte.

Using Bitcoin at Bitcoin Beach. Source: Twitter

For Bitcoin community project leader Mike Peterson, it starts with Lightning. Peterson pioneered the Bitcoin Beach project in the sleepy surf town of El Zonte, El Salvador. The circular economy energized an entire nation and eventually led to El Salvador adopting Bitcoin as legal tender in 2021. Peterson told Cointelegraph:

“You need to be using lightning for for people to be transacting and to build a circular economy. It really needs to be built on lightning. [..] You need to get people transacting.”

The layer-2 Lightning Network is a payments solution built on top of Bitcoin. In El Salvador, El Chivo is among the most popular Lightning-enabled Bitcoin wallets, although it has experienced issues since its rollout. Across the rest of the world, Bitcoin enthusiasts use Wallet of Satoshi, Muun Wallet, CoinCorner or Blue Wallet to instantly transact with one another. Peterson continued: 

“If you get them making that first transaction and they see how easy it is and that they’ve actually sent value from one person to another in like a second time for hardly almost no fees, that’s what the light bulb goes off and they realize the value that that has.”

Ultimately, leading with Lightning helps newbies realize that Bitcoin can be easy and even fun. In the Isle of Man, where there is a budding Bitcoin community, United Kingdom-based exchange CoinCorner has found inventive ways to demonstrate the Lightning Network.

Bitcoin Ekasi Project next to Mossel Bay, South Africa. Source: Twitter

Hermann Vivier, founder of Bitcoin Ekasi in the Western Cape of South Africa, shared a few tricks to establishing a Bitcoin economy. First, while it’s important to “put one foot in front of the other,” and “just start,” he said, try to see if there’s a preexisting community to tap into:

“We had something that that was already existing and we built the Bitcoin community on top of that.”

Bitcoin Ekasi is a township project that keeps kids away from gangs in school and among South Africa’s Atlantic waves, where they learn lifeguarding and surf skills. Vivier teaches Bitcoin as another element of the kids’ education.

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Furthermore, Vivier also shared that it’s important to keep it simple. Stick to Bitcoin, he joked. His hours of labor and love given to this community project have turned him into a “Bitcoin maximalist,” as it helps in avoiding the risk of scams in crypto, while blockchain buzzwords can get in the way of making progress:

“I would say 100% focus on Bitcoin only. And if there was something better than Bitcoin out there, then that’s what you should focus on. But at the moment Bitcoin is where it’s at.”

Nourou, founder of Bitcoin Senegal, a community-led Bitcoin project in West Africa, told Cointelegraph, “You cannot create a community if you aren’t capable of answering people’s questions–and that requires a wide range of knowledge.”

Iman Yudha, who leads a group of crypto and Bitcoin enthusiasts in Indonesia, agrees. He told Cointelegraph that it’s important to “Get educated first–before you make any decisions. That’s my personal opinion.”

After establishing a solid basis of foundational knowledge about Bitcoin, crypto and security. Nourou recommends to start talking about Bitcoin with close relations:

“Start with the family if you can’t convince your mother, your brother, your sister, the cousins, and so on, it’s a bad start.” 

He notes that the following step varies depending on the culture, business practice and environment. Over in Senegal, “it is the wealthiest who roughly define fashion, who define trends. So people tend to copy them.” It’s for that reason that Nourou tried to target his Bitcoin communication to those communities first. Incidentally, Nourou is hosting West Africa’s first major Bitcoin conference, Dakar Bitcoin Days, on Dec. 2 in West Africa’s largest theater.

Cointelegraph attended Dakar, Senegal’s first ever Bitcoin meetup in 2022.

Lukas, a co-founder of Global Bitcoin Fest — which holds marathon Twitter Spaces for people all around the world — again encourages Bitcoin enthusiasts to focus on the people. It can be “lonely” in the land of Bitcoin, he told Cointelegraph, so finding a team with shared values can spur things along. He shared an example:

“It’s a conversation that I’ve had recently with two guys in Zimbabwe. They want to kickstart a [project] there. He wanted to do it, but he was alone. […] Then he found Metamorphoses, another great maxi, and now they’re forming a team — and the energy is completely different now.” 

Yudha chimed in, sharing that energy and enthusiasm are critical, and community builders should avoid being “toxic” where possible. 

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In short, these Bitcoin pioneers suggest finding like-minded individuals to work with, starting small, taking advantage of existing communities, knowing and understanding the subject matter and not overstretching. The simplest way to do this is to focus on Bitcoin and Bitcoin only. And to get people interested and transacting, get people using the Lightning Network because that’s what gives people their own light bulb moment.

South African grocery giant ‘Pick n Pay’ intends to accept Bitcoin in all stores nationwide

The company said it will allow customers to pay with any bitcoin lightning-enabled app and QR codes for speedy payments.

Pick n Pay, one of South Africa’s largest supermarket chains, is set to allow its customers to pay for items in all its stores using Bitcoin (BTC).

According to South African-based tech news outlet Tech Central, Pick N Pay is planning to roll out its cryptocurrency payments service to its stores nationwide in the coming months after years of experimentation in select stores. The supermarket chain allegedly started experimenting with Bitcoin payments five years ago in Cape Town but was stymied by expensive costs and long transaction wait times.

The nationwide rollout will allow the store’s customers to pay for items using cryptocurrency through “trusted apps” on their smartphones or by simply scanning a QR code and accepting the rand conversion rate at the time of payment.

As per the report, Chris Shortt, the group executive for IT at Pick n Pay, shared that the advancement and evolution of cryptocurrency technology over the years has made it possible to now “provide an affordable service for high volume, low-value transactions that will promote financial inclusion in South Africa.”

Pick n Pay reportedly partnered with Electrum and CryptoConvert during its pilot program to make it possible for customers to pay for items via the Bitcoin lightning network.

Related: South African crypto landscape primed for TradFi growth after FSCA ruling

South Africa appears to be making headway when it comes to the adoption of cryptocurrency in the African region. In October, South Africa’s Financial Sector Conduct Authority (FSCA) amended its financial advisory to define crypto assets in the country as financial products, making it possible for cryptocurrencies to be offered by both domestic and international South-African licensed financial service providers.

Chainalysis’ 2022 Global Crypto Adoption Index, published in September, also ranked South Africa 30th worldwide for cryptocurrency adoption. Various estimates support the notion that about 10-13% of the South African population are crypto holders.

South African crypto landscape primed for TradFi growth after FSCA ruling

Industry insiders believe South Africa’s move to classify cryptocurrencies as financial products could drive the adoption and legitimacy of the sector.

South African financial service providers have been primed to offer cryptocurrency products and services to customers after regulatory amendments in the country.

This comes after South Africa’s Financial Sector Conduct Authority (FSCA) amended its financial advisory act from 2002 on Oct. 19 to define crypto assets in the country as financial products. Most importantly, the definition means that cryptocurrencies can now be offered by financial service providers, both domestic and international, given that they are licensed in South Africa.

South Africa already commands a growing number of retail cryptocurrency users, estimated to include as many as 6 million individuals. The South African Reserve Bank has also taken a measured approach in its regulatory stance on the sector in an effort to ensure investor protection without hampering innovation.

Cointelegraph touched base with two prominent cryptocurrency exchanges operating in the country, Luno and VALR, both of which have significant user bases. The companies are well placed to offer insights into the latest regulatory move, given that they cater to both retail and institutional clients.

VALR CEO Farzam Ehsani labeled the FSCA’s move as “good news for South Africa setting a path towards regulating crypto-asset service providers in the country” while ensuring “they are serving the public with integrity.”

Marius Reitz, Luno’s general manager for Africa, echoed these sentiments by highlighting the importance of regulatory clarity not only for investors but for financial service providers in the country:

“The licensing requirements that will flow from this classification will drive high standards in the industry, particularly in relation to consumer protection, with potential investors easily able to identify those providers that satisfy regulatory requirements.”

Reitz also flagged the key benefit, which now allows financial advisers to formally advise clients on cryptocurrency investments. Before the FSCA amended the definition of crypto assets, financial advisers were not permitted to give advice on unregulated investment opportunities.

“The regulatory framework paves the way for wider institutional adoption. How this plays out will depend on the ability of more traditional finance companies and even banks to be able to fully support this newly classified financial product.”

Chris Becker, cyber banking managing executive at Tyme Bank, also provided insights to Cointelegraph. The South African digital bank welcomed the move to regulate cryptocurrencies within existing frameworks as it looks to drive digital money services and payments.

Becker believes the move could bring some comfort to individuals who may have been cautious of interacting with crypto-asset service providers due to concerns of a lack of regulation, having worked for private wealth manager Investec as its blockchain lead in his previous role.

Becker also agreed that the regulatory move may support greater adoption in the long term if financial service providers use the new product category to offer crypto-asset products to their large customer bases.

Nevertheless, regulatory uncertainty has not stopped corporations and institutions from gaining exposure to cryptocurrencies in South Africa. Both exchanges already work with a number of institutional clients.

VALR serves more than 700 corporations and institutions, which includes a number of large traditional financial institutions in South Africa. Ehsani said the firm has been focused on building its infrastructure for the past five years to bridge traditional finance in the country to cryptocurrency markets. Luno also allows corporate customers to use its platform.

Meanwhile, Becker highlighted the reality that traditional financial service providers may not necessarily invest in cryptocurrencies as a result:

“Other regulations such as the Pension Funds Act and the Foreign Exchange Control Act do not yet make provision for crypto assets yet.”

VALR’s CEO also believes that the country could see cryptocurrency-related exchange-traded funds (ETFs) and similar financial products being developed and released in the next few months now that regulatory oversight is becoming clear:

“I think we’ll start seeing many more financial products related to crypto in the near future. Many people have been working on this for some time and now with the declaration, we should expect to see much of this work become visible to the public.”

Reitz offered a more measured take on the subject, highlighting the FSCA announcement as a first step in creating a broad regulatory framework for crypto assets in South Africa. He believes more clarity is needed around the wider application of the regulation with regard to permitted cryptocurrency financial products, highlighting America’s standpoint as an example:

“In the United States, Bitcoin ETFs can only hold BTC futures contracts or stocks of companies and other ETFs with exposure to cryptocurrencies as the SEC continues to evaluate the approval of ETFs that own BTC directly.”

Meanwhile, the FSCA delivered a more sobering message in a press conference that accompanied the Oct. 19 announcement. As Reuters initially reported, FSCA Regulatory Frameworks Department head Eugene Du Toit made it clear that cryptocurrencies are not recognized as legal tender in South Africa.

The regulator also stressed the importance of being able to grapple with scams and fraudulent activities in the space in an effort to protect local investors.