South Africa Adds Crypto Businesses to List of Accountable Institutions
Crypto exchange and custody businesses are among entities that will have to identify and keep records for new and existing clients.
Nov 30, 2022 at 3:03 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/CYZRSOWFO5D6XCF7W6AYOWOI2I.jpg)
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South African lawmakers have added crypto businesses to the country's list of accountable institutions, according to an amendment document published on Tuesday.
Businesses that offer exchange services, or are responsible for taking care of the safekeeping of crypto will have to identify and define new and existing clients and keep records of their identity. The rule was added as an amendment to the country's Financial Intelligence Act of 2001 and will take affect on Dec. 19.
Regulators all over the world have been calling for improved standards and transparency in the crypto sector following the collapse of exchange giant FTX in early November.
In July, Kuben Naidoo, deputy governor of the South African Reserve Bank said the country would introduce a regulatory framework for cryptocurrencies. In October, South Africa classified crypto assets as financial products.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.