South Africa Defines Crypto as Financial Product

The definition could widen the adoption of crypto across a nation whose population exceeds four million

article-image

Pretoria, South Africa; Source: Shutterstock

share

key takeaways

  • The country’s financial regulator has issued a general notice defining crypto within a legal framework
  • Crypto, as defined by the regulator, must possesses cryptographic properties and not belong to a central bank

South Africa’s primary markets regulator formally established legal definitions for cryptoassets on Wednesday, joining other nations on the continent in their efforts to increase industry oversight.

The Financial Sector Conduct Authority (FSCA) issued its general notice, defining crypto as financial instruments under the country’s financial services act, which brings the asset class in line with other regulated financial products.

Its definition widens the possibility for greater adoption of crypto in South Africa, which had already allowed citizens to freely hold and trade them.

Specifically, the FSCA’s declaration defines crypto as a distributed ledger technology-based asset not issued by a central bank and employing cryptographic techniques.

The asset must also be tradable and capable of being stored electronically for the purpose of payment and investment or other forms of utility, the regulator said.

Under the Financial Advisory and Services Act 2002, a financial product is defined as any money-market instrument, company shares, securitized debt and securities, among other things.

Several nations across the continent have in place provisions for dealing with crypto, including The Central African Republic which adopted bitcoin as legal tender in February, becoming the second country in the world to do so.

Also in February, Botswana passed a bill to regulate the trading of digital assets in a bid to tighten anti-money laundering measures.

The stance towards crypto across various African countries remains divided, however. Nigeria, for instance, has a bank ban in place for trading digital assets despite the country launching its own central bank digital currency, the eNaira in October 2021.

Several nations, including Cameroon, Egypt, Morocco and Tunisia also have bans in place against investing and using crypto, fearing the asset could pose a significant risk to their economic sovereignty.

Many other countries of the 54-member continent are yet to implement formal crypto regulations, with many of their central banks cautioning against their use.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Unlocked by Template.png

Research

RTK networks are critical to enabling a world of ubiquitous autonomous drones, vehicles, and industrial robots. We believe the GEOD token enables both a cost and product advantage for the GEODNET RTK network, which will allow it to out-compete multi-billion dollar incumbents Trimble and Hexagon.

article-image

Two stablecoin firms made announcements this week, with one raising an undisclosed amount and Paxos expanding into the EU through an acquisition

article-image

The president-elect nominated Cantor Fitzgerald CEO Howard Lutnick to run the commerce department

article-image

Plus, Suntory Group tokenizes Premium Malt’s beer on Avalanche

article-image

Today we’re bringing you some interesting data to recap Solana’s landmark day

article-image

One federal judge’s rulings this week found that the SEC had overstepped its authority and must vacate the Dealer Rule

article-image

Holiday gatherings are often a time investors discuss their investment journeys and gains, sparking curiosity