Unathi Kamlana, the commissioner of South Africa's Financial Sector Behave Authority, has reportedly said the authorities'south rollout of a crypto framework would be aimed at mitigating any potential risks.

According to a Fri report from Bloomberg, Kamlana said the fiscal regulator planned to present a regulatory framework early on in 2022 intended to protect investors from "potentially highly risky" crypto assets. The commissioner said whatsoever framework on crypto would be created in coordination with the Prudential Authority and Financial Surveillance Board of the South African Reserve Depository financial institution.

"What nosotros want to be able to do is to arbitrate when we think that what is provided to potential customers are products that they don't empathise that are potentially highly risky," said Kamlana. "Nosotros must be very careful to not simply legitimize them."

The FSCA commissioner's comments follow South Africa's Intergovernmental Fintech Working Group proverb in June it would exist laying the groundwork for the "phased and structured" regulation of cryptocurrencies in South Africa. The African nation'due south policy on crypto has largely been 1 of noninterference, but as well in warning the public that there was piffling protection or recourse from the government for scams or fraud.

When the co-founder of South African crypto investment platform AfriCrypt allegedly vanished with billions in user funds, the FSCA said it could non take action equally crypto assets were unregulated in the country. After receiving a warning, major crypto exchange Binance also challenged the FSCA's authority every bit South Africa's financial regulator, arguing instead that the country's Financial Intelligence Eye ensured crypto firms were in compliance with local laws.

Related: S African asset managing director denies stealing billions from users, claims $5M was lost in hack

In May, the South African Reserve Bank began an exploratory study on rolling out a central bank digital currency, or CBDC. The central bank is also office of a pilot program with those in Commonwealth of australia, Singapore, and Malaysia to trial international settlements using CBDCs.