Cryptocurrencies in South Africa are currently not regulated by the FSCA nor recognised as a financial product. However, we have recognised that the public, particularly the younger generation, recognise and accept this new form of currency.
The currency came into use in 2009 when its implementation was released as open-source software together with “Blockchain” which records transactions made in Bitcoin. Today there are more than 7 800 crypto currencies available worldwide.
Compli-Serve’s value add in this area is as follows:
- Understanding the FSCA’ stance on crypto currencies – The Crypto Assets Regulatory Working Group has been formed involving the main South African players and progress made is monitored closely by us.
- In close contact with the Regulator to understand how the licensing of a previously unregulated product will roll-out.
- A thorough understanding of the advantages and disadvantages of cryptocurrencies.
- A thorough understanding of the trading of crypto currencies using leveraged derivatives and the dangers of such trading.