- Crypto companies in South Africa with overseas headquarters may be mandated to maintain a local office.
- The country’s financial sector regulator, FCSA, claims over 10% of crypto firms in the country have their headquarters abroad.
- According to the regulator, the physical presence will help ensure appropriate oversight and accountability.
The Financial Sector Conduct Authority (FCSA) of South Africa may soon reportedly mandate that cryptocurrency firms with overseas headquarters maintain a local office in the country.
This move by the regulator follows a Crypto Asset Market Study, which showed that a sizable number of Crypto firms operating in the country have their headquarters in foreign countries. Indeed, the FCSA placed this number at 10%, saying a physical presence will appropriate oversight and accountability.
“For the 10% of entities that have an off-shore head office, consideration will need to be given to the requirements relating to having a local branch. This is important because it, amongst other things, creates a physical presence that would allow the FSCA to have appropriate oversight over and ensure accountability of the institution c…
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