The Financial Sector Conduct Authority (FSCA) on 20 November 2020 published the draft Declaration of Crypto Assets as a financial product, to be made in terms of paragraph (h) of the definition of financial product as defined in section 1 of the Financial Advisory and Intermediary Services Act (37 of 2002), as set out in the Schedule.
The effect of declaring crypto assets as a financial product under the FAIS Act is that –
· any person furnishing advice or rendering intermediary services in relation to crypto assets must be authorised under the FAIS Act as a financial services provider (FSP); and
· any person so authorised, including its representatives, must comply with the relevant FAIS requirements, e.g. the requirements of the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003 (General Code), the the Determination of Fit and Proper Requirements, 2017 (F&P Requirements), etc.
Crypto Assets means any digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes, but excluding digital representations of fiat currencies or securities that already fall within the definition of financial product.