The declaration of Crypto assets as a financial product – What does this mean?
On 19 October 2022, the crypto asset were declared as a financial product under the Financial Advisory and Intermediary Services Act, 2002 (“the Act”). In effect this means that:
- Any person furnishing advice or rendering intermediary services in relation to crypto assets must be authorised under the FAIS Act as a financial services provider (FSP); and
- Any person so authorised, including its representatives, must comply with the relevant FAIS requirements.
Information Request 7 of 2022 was published in respect of crypto asset-related activities conducted by Crypto Asset FSPs in South Africa.
“Crypto Asset FSP” means a person that is required to be licensed under section 8 of the Act to render a financial service.
The purpose of the Information Request is to assist the Authority in obtaining a better understanding of crypto asset related activities that Crypto Asset FSPs are currently performing in the crypto asset environment, in turn to better understand related conduct risks.
All Crypto Asset FSPs must complete the attached Annexure A in full and submit in word format via e-mail to the Authority at Keith.Sabilika @ fsca.co.za by no later than Wednesday 15th February 2023.
You can download the FSCA Information Request 7 and Annexure A from under FAIS Notices/2022 here.
