{"id":35443,"date":"2021-01-27T15:01:39","date_gmt":"2021-01-27T13:01:39","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=35443"},"modified":"2025-08-29T01:20:17","modified_gmt":"2025-08-28T22:20:17","slug":"cryptocurrencies-to-come-under-regulation-in-south-africa","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/cryptocurrencies-to-come-under-regulation-in-south-africa\/","title":{"rendered":"Cryptocurrencies to come under regulation in South Africa"},"content":{"rendered":"<p>The Financial Sector Conduct Authority (FSCA) of South Africa has tabled for consideration a proposal to regulate cryptocurrencies. This was driven by growing public interest and the uncovering of a large Ponzi scheme, according to <a href=\"https:\/\/www.financemagnates.com\/cryptocurrency\/regulation\/south-african-regulator-moves-for-crypto-regulation\/\" target=\"_blank\" rel=\"noopener noreferrer\">Finance Magnates<\/a>.<!--more--><\/p>\n<p>Earlier regulatory attempts to impose a framework for digital assets did not gain support. Scammers have actively exploited this, enticing citizens with promises of high returns.<\/p>\n<p>The latest high-profile incident of this kind was the collapse of Mirror Trading International (MTI). The company defrauded 28,000 investors, who entrusted 23,000 bitcoins (about $718.3 million at the current rate). The organisers promised monthly returns of at least 10%.<\/p>\n<p>During MTI&#8217;s bankruptcy proceedings, it emerged that the company kept no accounts and did not collect client information. The liquidators were able only to recover a list of 170,000 email addresses.<\/p>\n<blockquote>\n<p>\u201cWhen something becomes a Ponzi scheme, our jurisdiction ends. We need police and prosecutors to act quickly and put people in prison,\u201d said the FSCA&#8217;s enforcement department head Brandon Tofem.<\/p>\n<\/blockquote>\n<p>Industry observers noted that the MTI case could grant FSCA the authority to regulate the cryptocurrency market, which it has sought for a long time.<\/p>\n<p>In November, the Financial Sector Conduct Authority presented a draft regulation, under which <a href=\"https:\/\/u1f987.com\/en\/news\/south-africa-to-treat-cryptocurrencies-as-financial-products\">Bitcoin is treated as a financial product<\/a>.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Sector Conduct Authority (FSCA) in South Africa has tabled for consideration a proposal to regulate cryptocurrencies. This was driven by growing public interest and the uncovering of a large Ponzi scheme, Finance Magnates reports.<\/p>\n","protected":false},"author":1,"featured_media":35444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,1839],"class_list":["post-35443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-regulation","tag-south-africa"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=35443"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35443\/revisions"}],"predecessor-version":[{"id":35445,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35443\/revisions\/35445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/35444"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=35443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=35443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=35443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}