Unathi Kamlana, the commissioner of South Africa’s Financial Sector Conduct Authority, reportedly revealed the authority’s initiative to introduce a crypto framework to help steer clear from risks. 

Specifically, as per a Bloomberg report, Kamlana reportedly shared that the financial regulator has plans down its pipeline to roll out a regulatory framework early in 2022, with a target of providing protection for investors from “potentially highly risky” crypto assets.

The commissioner further claimed that any framework on crypto would be established in coordination with the Prudential Authority and Financial Surveillance Board of the South African Reserve Bank.

“What we want to be able to do is to intervene when we think that what is provided to potential customers are products that they don’t understand that are potentially highly risky. We must be very careful to not just legitimize them.” Kamlana additionally shared. 

The remarks from the FSCA commissioner reportedly surfaced after South Africa’s Intergovernmental Fintech Working Group claimed in June regarding its work for establishing the groundwork for the “phased and structured” regulation of South Africa-based cryptocurrencies. 

The policy focusing on crypto of the country from the African continent has reportedly majorly been one of non-interference, but also warns the general audience against the protection or recourse insufficiency from the authority, in terms of scams or fraud.

When the co-founder of South African crypto investment platform AfriCrypt disappeared from public radar with billions in user funds, the FSCA was not able to carry out any actions, since crypto is an asset not subject to any legal regulations in the nation. 

After receiving a warning, high-profile crypto exchange Binance further challenged the FSCA’s authority as South Africa’s financial regulator, claiming that the nation’s Financial Intelligence Centre ensured crypto companies were compliant with local laws.