South Africa’s Ministry of Finance said on February 26 that amendments to the country’s Financial Intelligence Centre (FIC) Act are expected to be finalized in 2022, which will bring crypto asset service providers into accountable bodies.
The move to regulate crypto service providers comes as South Africa tries 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 that crypto-assets are expected to be recognized as financial products under the Financial Advisory and Intermediary Services Act (FAIS), aimed at protecting consumers.