The South African government has taken action for crypto assets! According to the South African government, crypto companies – or companies whose services include the exchange or transfer of crypto assets – should be included in the list of companies called from December 19. Companies that convert one crypto currency to another or carry out transactions where cryptocurrencies are transferred “from one crypto asset address to another” will also be added.
Amendments to the Financial Information Industry Act
The South African government recently said that crypto business operators will be added to the list of important companies when it comes to legal issues. According to the official announcement of November 29, the addition of crypto companies to this list follows changes in Schedules 1, 2 and 3 of the Financial Intelligence Center Act 2001. The change in the law came into effect on December 19 and was made by South Africa’s finance minister, Enoch Godongwana. In the announcement, Godongwana calls out the types of services and activities related to crypto that will be included in the list of companies that are called services. In companies or companies that should include people “exchange cryptocurrencies for fiat money or otherwise”.
Companies that convert one crypto currency to another or carry out transactions where cryptocurrencies are transferred “from one crypto asset address to another” will also be added. Individuals or companies that provide security services or crypto asset providers will be added to the list, the notice said.
There is no definition of crypto assets and financial market rules
The revelation of South Africa’s intention to add crypto companies to a list that includes lawyers, investment schemes and money transfer businesses comes less than two months after crypto assets were designated as financial products by the Financial Sector Conduct Authority. Meanwhile, at the same government level, South Africa’s financial regulator is also defining what constitutes a crypto asset from the government’s point of view.
“A crypto-asset means a digital representation of a perceived value that can be traded or transferred on computers in the Internet-based community that views it as a means of exchange, a group of accounts, or a house market value and use it to pay or invest. purpose, but does not include a digital representation of fiat money or a security as defined in the Capital Markets Act 2012,” explains the opinion.