Should all tokens be equal in the crypto market?

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Financial Sector Conduct Authority,FSCA,Crypto Asset Service Provider

Since SA is still at the beginning of its crypto asset regulatory journey, it is expected that further clarity will be provided in the future, says Lerato Lamola, partner at Webber Wentzel.

By Lerato Lamola, partner, Webber WentzelAs of June 2024, the Financial Sector Conduct Authority has issued 138 crypto asset service provider licences. With the rolling out of licences, the discussion around the crypto industry moves from whether crypto assets should be regulated, to more detailed topics around what should be regulated and how it should be regulated.

Now that South Africa has decided the initial material question of whether it wants to regulate crypto assets, the regulatory discussion now progresses to other areas that require clarity. One of the emerging discussions is whether all tokens should be regulated in the same manner. Unlike Europe's Markets in Crypto-Assets Regulation , which sets out categories of crypto assets within its regulatory regime, South Africa adopts a broad definition for crypto assets and currently does not have any sub-categories. To add further complexity to the discussion, the two pieces of regulation that currently cover crypto assets in South Africa do not adopt the same definition. The definitions are similar; however, they are not the same.

Is considered by a community of users as a medium of exchange, unit of account or store of value and use it for payment or investment purposes.

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