South African Regulator Explains Why It Has Been Targeting Global Crypto Exchanges – Regulation Bitcoin News

Brandon Topham, the head of enforcement at South Africa’s financial sector regulator, has insisted that his organization has not issued warnings to some global exchanges because they deal in crypto. Instead, warnings have been issued to the exchanges because they aren’t registered to offer derivatives in South Africa.

To offer derivative products, exchanges are not required to be registered

An official with the South African financial sector regulator, the Financial Sector Conduct Authority (FSCA), has said his organization has been targeting global cryptocurrency exchanges operating in the country because they “offer a derivative product with crypto as the underlying or reference asset.”

Bitcoin.com News previously reported that South Africa’s regulator issued warnings in the past against major crypto exchange platforms, such as Binance and FTX. In some cases, the regulator’s warnings have forced some crypto exchanges operating in the country to terminate certain services.

Although the FSCA claims that it is protecting the public with its warnings, others speculate that international exchange platforms could be targeted for dealing in cryptocurrency.

But, he rebutted this story by quoting Brandon Topham (head of enforcement at FSCA), in a report indicating that the FSCA is taking action because exchanges have not been registered to offer derivatives. He explained:

Talking with various over-the-counter derivative products is something we are considering [ODP]Providers who have not yet registered with us

Coming Regulatory Regime

Official reiterated the fact that the FSCA was working on a regulation regime to protect crypto investors.

“We are looking at creating a regulatory environment for them to be registered in [order]Protect customers and legal players against exploitation. This is currently underway,” explained the FSCA official.

The official insisted that once the envisioned regulatory environment is in place, South Africa “will be one of the most progressive countries in the world at this stage.”

Topham, on the other hand claimed that regulators are not trying to stop development of crypto-related industries. Instead, the FSCA said it wants to enable the development of the industry but it “will not rush into this.”

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Terence Zimwara

Terence Zimwara was a Zimbabwe author, journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.