According to Odaily, South Africa's Financial Intelligence Centre (FIC) has issued a directive concerning the transfer of crypto assets. This directive follows the authorization of 75 crypto asset service providers (CASPs) by the South African Financial Sector Conduct Authority. The FIC aims to tighten regulations by demanding more detailed and stringent requirements for digital transactions from CASPs. The scope of this directive applies to institutions facilitating domestic or cross-border crypto asset transfers.
CASPs acting as intermediaries must comply with the new 'travel rule', which requires the exchange of specific transaction details. The goal is to enhance the detection of illegal digital crypto transactions. However, there are still concerns about centralization and data privacy risks when sharing sensitive information with external crypto exchanges.