SOUTH AFRICA: FINANCIAL SERVICES CONDUCT AUTHORITY INFORMATION REQUEST 7 OF 2022

By Bright Tibane,Kirsten Kern Thursday, December 15, 2022
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We refer to our newsflash published on 20 October 2022, outlining the declaration of crypto assets as ’financial products’ in terms of the Financial Advisory and Intermediary Services Act 2002 (FAIS) (Crypto Asset Declaration), and our newsflash published on 25 October 2022, outlining amendments to the Financial Services Conduct Authority (FSCA) FAIS Notice 90 of 2022 that was published alongside the Crypto Asset Declaration and which temporarily exempts crypto-asset service providers (Crypto Asset FSPs) from the FAIS licensing requirement).

On 13 December 2022 and pursuant to paragraph 3(2) of FSCA FAIS Notice 90 of 2022, the FSCA published FSCA Information Request 7 of 2022  requesting information in respect of crypto asset-related activities conducted by Crypto Asset FSPs in South Africa. The purpose of FSCA Information Request 7 of 2022 is to assist the FSCA with understanding the crypto asset-related activities that Crypto Asset FSPs are currently performing and related conduct risks. 

The FSCA requires information as it relates to details of a Crypto Asset FSP and information on business practices of the Crypto Asset FSP as at 31 December 2022.

All existing Crypto Asset FSPs are required to comply with the request for information by completing and submitting Annexure A attached to FSCA Information Request 7 of 2022 to the FSCA. Failure to do so will constitute non-compliance with paragraph 3(2) of FSCA FAIS Notice 90 of 2022 which will result in the exemption contemplated in FSCA FAIS Notice 90 of 2022 no longer being applicable to that Crypto Asset FSP. To the extent that a Crypto Asset FSP renders financial services at such time at which FSCA FAIS Notice 90 of 2022 is no longer applicable to it, such a Crypto Asset FSP will be in contravention of section 7(1) of FAIS (the licensing requirement).  

A completed Annexure A must be submitted to the FSCA via e-mail (Keith.Sabilika@fsca.co.za) by no later than 15 February 2023.