South African regulators are racing against the clock to bring in new regulation for crypto

South Africa’s $4 billion in crypto scams has regulators scrambling to bring in new regulations within the next three to six months.

The first move is likely going to be establishing proper know-your-customer (KYC) norms for crypto exchanges and the creation of systems to prevent money laundering, not unlike what South Korea is trying to put in place right now.

The second phase will involve coming out with investor-protection guidelines and rules for managing the risk facing banks.

Meanwhile, the Financial Services Conduct Authority (FSCA) is looking to categorise cryptocurrencies as financial products, which would put them under the regulatory body’s purview.