Crypto complaints have increased significantly, says the ombudsman of the South African financial sector-regulation
Crypto complaints have increased significantly, says the ombudsman of the South African financial sector-regulation
Nonkumbulo Tshombe, a lawyer of the ombudsman for financial advice and intermediary services (FAIS), recently announced that her office in the 2020/21 financial year has determined a significant increase in the number of complaints in connection with cryptocurrencies.
cryptocurrency not yet regulated
A lawyer of the South African office of the ombudsman for the financial services sector, Nonkumbulo Tshombe, recently announced that her organization had a significant increase in the number of crypto -related complaints in the 2020/21 financial year.
Despite such complaints, Tshombe is in a. cited by Moneyweb explains that your organization explains such Inquiries cannot accept because cryptocurrencies have not yet been regulated.
"crypto assets are not classified as a financial product, that is, the product is not the responsibility of this office," said the lawyer.
Although South Africa has not yet regulated cryptocurrencies, it has intervened via the Financial Sector Conduct Authority (FSCA) or forced measures against certain crypto companies or individuals. For example, to help investors of Mirror Trading International (MTI) to recover their funds, the FSCA has taken several steps, including attacked the home of one of the pioneer.
In addition, as reported by Bitcoin.com News, the FSCA has published public warnings that warn the public about dealing with certain cryptocurrency companies or their products. Such information has already prompted the global crypto exchange Binance, South Africa.
cryptocurrency as a financial product
As the Moneyweb report states, South Africa could be about to get a regulatory framework for cryptocurrencies. In order to underpin this claim, the report refers to a declaration by the FSCA in June, which says that it is considering declaring cryptocurrencies into a financial product.
According to Tshombe, this explanation that authorizes the FSCA to regulate the advisory and mediating component of crypto-assets. This explanation will also enable your office to examine symptoms in connection with crypto-assets, such as the 10,552 complaints that it received in the 2020/21 financial year.
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