Brandon Topham, the head of enforcement at South Africa’s financial sector regulator, has insisted that his organization has not issued warnings to some global exchanges because they deal in crypto. Rather, the warnings have been made because the exchanges are not registered to offer derivatives in the country.
Exchanges Not Registered to Offer Derivative Products
An official with the South African financial sector regulator, the Financial Sector Conduct Authority (FSCA), has said his organization has been targeting global cryptocurrency exchanges operating in the country because they “offer a derivative product with crypto as the underlying or reference asset.”
As previously reported by Bitcoin.com News, the South African regulator has in the past issued public warnings against global crypto exchange platforms like FTX, Binance, and Bybit. In some cases, the regulator’s warnings have forced some crypto exchanges operating in the country to terminate certain services.
While the FSCA insists that its warnings are designed to protect the public, some have speculated that global exchange platforms are being targeted because they deal with cryptocurrency.
However, pushing back against this narrative, Brandon Topham, the head of enforcement at the FSCA, is quoted in a report suggesting that action is being taken because the exchanges are not registered to offer derivatives. He explained:
We are looking at speaking with a number of over the counter derivative product [ODP] providers who are not registered with us.
Upcoming Regulatory Regime
The official reiterated that the FSCA is working to create a regulatory regime that would protect cryptocurrency investors.
“We are looking at creating a regulatory environment for them to be registered in [order] to protect the customers and legitimate players from exploitation. This is currently underway,” explained the FSCA official.
The official insisted that once the envisioned regulatory environment is in place, South Africa “will be one of the most progressive countries in the world at this stage.”
On the other hand, Topham claimed that the regulator is not trying to stop the development of the crypto industry. Instead, the FSCA said it wants to enable the development of the industry but it “will not rush into this.”