South African regulator to declare digital currencies as financial products after $3.8B scam

Following one of the largest scams in the digital currency industry, the South African financial regulator is seeking to bring the sector under its purview. The Financial Services Conduct Authority is seeking to categorize digital currencies as a financial product. This would give it jurisdiction over the industry and allow it to protect investors who are becoming increasingly vulnerable.

South Africa has seen two of the biggest digital currency scams in the past year. First was Mirror Trading International which reportedly took off with over $170 million. The latest one is the biggest one yet. As CoinGeek reported, Africrypt reportedly took off with $3.8 billion, making it one of the largest scams in the history of digital currencies.

With investors becoming a target for scammers, the Financial Services Conduct Authority is seeking to become more involved in the industry. According to a report by IOL, the FSCA is looking to declare Bitcoin and the…