Deadline for crypto asset FSPs to complete FSCA questionnaire

The FSCA has given crypto asset FSPs until February to complete a questionnaire about their activities.

In October, the Authority declared a crypto asset as a financial product under the FAIS Act. FAIS Notice 90 of 2022, which was published with the declaration, granted certain exemptions from section 7(1) of the Act, subject to, among other conditions, providing information to the FSCA on request. Section 7(1)(a) prohibits a person from acting as a financial services provider unless they have been licensed by the FSCA.

A “crypto asset FSP” means a person who is required to be licensed under section 8 of the FAIS Act to render a financial service in relation to crypto assets and currently renders financial services under the exemptions in FAIS Notice 90 of 2022.

The FSCA said the purpose of “Information Request 7 of 2022” is to assist the Authority in obtaining a better understanding of the crypto asset-related activities that crypto asset FSPs are performing in the crypto asset environment, “to better understand related conduct risks”.

All Crypto Asset FSPs must complete Annexure A (Word document) in full and email it to Keith.Sabilika@fsca.co.za by no later than Wednesday, 15 February 2023.

Queries relating to the request for information should be emailed to the FSCA’s FinTech Unit using the email above.

The FSCA warned that a failure to provide the specified information by the deadline constitutes non-compliance with paragraph 3(2) of FAIS Notice 90 – namely, the requirement to submit information requested by the FSCA. Non-compliance with any of the conditions in FAIS Notice 90 will automatically result in the withdrawal of the exemptions. Individuals who continue rendering financial services once the exemptions have been withdrawn will be in contravention of section 7(1) of the FAIS Act.

Read: What crypto asset providers need to know about licensing, regulation