South Africa Is Preparing For The Cryptocurrency Regulations

South Africa is preparing for the cryptocurrency regulations. The regulator institution will take some measures to protect investors.

According to a report published by Bloomberg on December 10, the South African financial regulator plans to introduce regulations regarding cryptocurrencies in 2022. South Africa's Financial Sector Conduct Authority (FSCA) will prepare a regulatory framework to protect particularly vulnerable investors in the country. The main reason for this initiative is that investors have suffered great losses due to the increasing cryptocurrency frauds in the country. As it is known, recently, there has been a serious increase in fraudulent activities related to cryptocurrencies. As a result of these activities, investors lost billions of dollars. In fact, it was recently revealed that two brothers from an institution in South Africa, which is now closed, stole $ 3.6 billion worth of Bitcoin from investors. Situations like these have caused regulatory agencies to initiate investigations around the world. Making a statement on the subject, FCSA official Unathi Kamlana said: "What we really want here is to intervene against potentially high-risk products that investors don't understand." The new initiative will include stricter rules, according to Unathi Kamlana, the head of South Africa's largest financial regulator. That's because, Kamlana says, solid cryptocurrency oversight is needed as the FCSA's way of protecting investors from potentially risky schemes. Cryptocurrency regulations to be introduced in this context will include provisions that will ensure the balance between cryptocurrency trading and the country's financial markets.