Nonkumbulo Tshombe, an advocate with the Financial Advisory and Intermediary Services (FAIS) Ombud, recently revealed that her office has noted a significant increase in the number of cryptocurrency-related complaints during the 2020/21 financial year.
The Regulations for Cryptocurrency are not yet established
Nonkumbulo Tshombe is an advocate for the South African financial sector ombudsman. She recently disclosed that there has been a marked increase in crypto-related complaints since the 2020/21 financial years.
Moneyweb quoted Tshombe in an article, despite the fact that she received such complaints. She explained that because cryptocurrency is not yet regulated, it was impossible for her to entertain these inquiries.
“Crypto-assets are not classified as a financial product, which means the product falls outside of this office’s jurisdiction,” explained the advocate.
South Africa doesn’t yet have a cryptocurrency regulation, however it has taken or forced the implementation of action against some crypto-related entities through its Financial Sector Conduct Authority. To help mirror trading international (MTI) investors recover their money, the FSCA went to great lengths, raiding the homes of one of its masterminds.
Bitcoin.com News reported that the FSCA issued public advisory which warns the public to avoid dealing with cryptocurrency entities or products. Binance, a global cryptocurrency exchange, has already been forced to stop its operations in South Africa by such advisories.
As a financial product, cryptocurrency
The Moneyweb report points out that South Africa could be in the process of establishing cryptocurrency regulation. This assertion is supported by a report that cites a statement made June 2016 by the FSCA indicating its intention to declare cryptocurrency a financial product.
Tshombe says that this declaration will allow the FSCA regulate crypto asset advisory and intermediary components. Her office will be able to use this declaration to investigate any complaints related crypto asset, like the 10552 it received in 2020/21.
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