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The DA’s Federal Council has accepted a resolution to pass legislation that will regulate companies dealing in cryptocurrency, namely, Crypto Asset Service Providers (CASPs), after the 2024 National and Provincial Elections.

I was pleased to be able to announce this while delivering the opening address at the CV Summit in Cape Town today.

With multiple recent international financial scandals involving crypto companies, such as FTX and Celsius, the need for such legislation has become clear. As such, the resolution was proposed by myself, seconded by Ashor Sarupen, MP and duly accepted by the Federal Council.

If South Africa is ever to escape its Financial Action Task Force (FATF) greylist status – which designates the country as high risk for illicit financial activities – it is crucial that the new wave of financial service providers related to crypto are properly regulated.

The country is missing out on massive international investment by being on the greylist, which once again harms our efforts to create jobs. It is of the utmost importance that we take steps to improve the integrity of our markets and financial institutions, and as such crypto legislation is a necessity.

The DA is aware of both the potential benefits, and the potential risks, that are part and parcel of any new technology. That is why it is only the DA that has made sure we are ready to adapt to new opportunities and challenges that arise with regard to crypto.

Issued by Cayla Murray, MPP - DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism