Declaration on crypto assets welcomed

CAPE TOWN – LUNO, the biggest cryptocurrency group in South Africa, welcomed the publication by the Financial Sector Conduct Authority (FSCA) on Friday of a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services (FAIS) Act.

Globally there is rapidly growing interest by retail investors to purchase crypto assets. South Africa has also experienced an exponential increase in the provision and use of crypto assets, the FSCA said in a statement on Friday.

Luno general manager for Africa Marius Reitz said they welcomed the draft declaration and cryptocurrencies were increasingly demonstrating the significant role they could play in the future of money.

He said they support regulation in the industry, because it made it possible for consumers and professional services such as auditors to be confident they were dealing with a product defined by regulatory standards and that licensed crypto products have passed through a vetting process.

The FSCA said the manner in which crypto assets can be regulated has been under consideration by the National