South Africa to finalize financial law amendments in 2022, involving cryptocurrency-related regulations

South Africa’s Ministry of Finance said on February 26 that it expects to finalize amendments to the country’s Financial Intelligence Centre (FIC) Act in 2022 that will bring crypto asset service providers into accountable bodies.

The move to regulate crypto service providers comes as South Africa attempts to address “significant weaknesses in South Africa’s AML/CFT system” identified by the Financial Action Task Force (FATF).

The proposed amendments, which have been open for public comment since June 2022, will bring the FIC Act into line with the standards set by the FATF, the South African Treasury explained in its latest budget review document. “This change will address concerns about money laundering and terrorist risk financing through crypto assets and bring the bill into line with the standards set by the FATF for virtual asset and related service providers.” The South African Ministry of Finance also revealed in a budget review document. , it is expected that crypto assets will be recognized as financial products under the Financial Advisory and Intermediary Services Act (FAIS), designed to protect consumers.