South Africa’s regulator tightens transaction rules for crypto asset service providers
- South Africa's Financial Intelligence Centre (FIC) has issued a draft directive to ensure that accountable institutions that provide crypto asset services adhere to and implement the Financial Action Task Force's (FATF) recommendations.
- The directive requires crypto asset service providers in South Africa to transmit and verify certain identity information and provide documentation when conducting a cryptocurrency transaction.
- This move is part of an effort to resolve the Financial Action Task Force's (FATF) greylist action by adhering to the 'Travel Rule' for virtual assets like cryptocurrency.
The draft directive issued by South Africa's Financial Intelligence Centre (FIC) is a positive step towards resolving the FATF's greylist action. By implementing the FATF's recommendations, the country aims to strengthen its regulatory framework for crypto asset services. However, it remains to be seen how effectively the directive will be enforced and whether it will lead to improved compliance and transparency in the crypto industry.
