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South Africa’s Regulator Tightens Rules for Crypto Asset Transfers via Latest Directive

source-logo  news.bitcoin.com 28 May 2024 02:37, UTC

The Financial Intelligence Centre (FIC) has proposed a directive regarding crypto asset transfers. This directive follows the licensing of 75 crypto asset service providers (CASPs) by the Financial Sector Conduct Authority in South Africa. The FIC aims to tighten regulations by requiring CASPs to implement more detailed and stricter requirements for digital transactions. The directive’s scope applies to institutions facilitating domestic or cross-border transfers of crypto assets. CASPs acting as intermediaries must adhere to a new “travel rule,” which mandates the exchange of specific transaction details. The goal is to enhance the detection of illegal digital crypto transactions, but concerns remain about centralization and data privacy risks when sharing sensitive information with external crypto exchanges.