The declaration of a cryptocurrency asset as a financial product under the Financial Advisory and Intermediary Services Act, 2002 (FAIS) was published under a general notice in Government Gazette 47334 of 19 October 2022.

The declaration does not provide for any licensing requirement; however, it qualifies crypto assets (including cryptocurrency) as a financial product under FAIS. The effect of this qualification is that any person seeking to provide financial services regarding crypto assets must obtain a licence from the Financial Sector Conduct Authority (FSCA).

This is a welcome move by the authorities. The licence regime will significantly impact the industry by boosting innovation and protecting consumers, investors, and other key players in the industry.

Lineablu is adept in advising local and foreign entities on the licensing requirements to offer crypto assets and related services in South Africa.