“What we want to be able to do is to intervene when we assume that what is provided to potential customers are product that they don’t perceive that are potentially highly risky,” aforesaid Unathi Kamlana.
Unathi Kamlana, the commissioner of South Africa’s money Sector Conduct Authority, has reportedly said the government’s rollout of a crypto framework would be geared toward mitigating any potential risks.
According to a Friday report from Bloomberg, Kamlana said the money regulator planned to gift a regulatory framework early in 2022 meant to shield investors from “potentially extremely risky” crypto assets. The commissioner said any framework on crypto would be created in coordination with the prudent Authority and money police investigation Board of the South African banking company.
“What we wish to be ready to do is to intervene after we think that what's provided to potential customers ar product that they don’t perceive that are probably extremely risky,” said Kamlana. “We should be terribly careful to not simply allow them.”
The FSCA commissioner’s comments follow south africa|Republic of South Africa|African country|African nation}’s Intergovernmental Fintech working group saying in June it'd be birth the groundwork for the “phased and structured” regulation of cryptocurrencies in South Africa. The African nation’s policy on crypto has mostly been one among nonintervention, however conjointly in warning the general public that there was very little protection or recourse from the govt. for scams or fraud.
When the co-founder of South African crypto investment platform AfriCrypt allegedly vanished with billions in user funds, the FSCA said it couldn't take action as crypto assets were unregulated within the country. when receiving a warning, major crypto exchange Binance conjointly challenged the FSCA’s authority as South Africa’s money regulator, arguing instead that the country’s money Intelligence Centre ensured crypto companies were in compliance with native laws.
( Turner Wright, Cointelegraph, 2021 )