South Africa's Financial Sector Supervisory Authority (FSCA) has put forward a draft regulation that would classify Bitcoin and other cryptocurrencies as financial products. South Africa unveils new crypto regulations The new cryptocurrency rules will apply to service providers, including exchanges, advisors and brokers. In order to do business in the country, they will all have to register as financial service providers. Noting the growing interest in digital currencies, the regulator stressed that the submitted document in no way affects the status of cryptocurrencies in the context of other laws and is not intended to regulate or legitimize them. "The draft regulation is merely an interim step to mitigate certain risks that are inherent in crypto assets," - FSCA said. The regulator added that the document was adopted pending other decisions being considered by the Cryptocurrency Regulation Working Group. Earlier this year, the Intergovernmental Fintech Working Group presented a paper stating that cryptocurrency cannot be legal tender in South Africa and its use must be strictly controlled. Interest in cryptocurrencies in Africa Africa has recently seen an increase in interest in cryptocurrencies. In November 2019, Jack Dorsey, CEO of Twitter, turned his attention to Africa. Dorsey recently said that: According to research, about 1.25 million South Africans own cryptocurrencies. This, however, does not show how many of them are actively trafficking. However, looking at the overall development, there is no indication that most of them are HODLers. If the market shows any signs of an impending bull market, South Africans will be able to pour millions of dollars into daily trading volume, and all of Africa will follow suit. It is important to note that South Africa is not the only country heavily invested in cryptocurrencies. Nigeria and Ghana are not far behind. Therefore, Africa is starting to shape up as the best of the cryptocurrency hubs. All that is needed is to convince companies to integrate with this region. Tags bitcoin south africa regulations SOUTH AFRICA
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