South Africa to Start Work on Stablecoin Regime, Will Start by Considering Use Cases
South Africa's Intergovernmental Fintech Working Group plans to conduct an analysis of stablecoins use cases and develop a suitable policy and regulatory response in 2022. The group is also examining the impact of tokenization on domestic markets, with a discussion paper on the regulatory implications of tokenization and blockchain-based financial market infrastructure expected by December. In 2021, South Africa's Financial Sector Conduct Authority and the Financial Intelligence Centre classified crypto as a financial product and began registering crypto asset service providers. This year, the country will include stablecoins as a specific type of crypto, according to the Treasury department's budget paper. The upcoming presidential election on May 29 is not expected to change the policy approach to crypto, despite potential risks to the ruling party's majority.
