The Financial Sector Conduct Authority described crypto assets as "a digital representation of value."
A cryptocurrency asset can be exchanged, transferred, or stored electronically for use in payments even when the central bank does not issue them.
The announcement is the first necessary legal action to bring the South African legal system to bear on the cryptoasset market.
US legislators and authorities are looking for measures to control how stablecoins operate.
"High standards in the sector will be prompted by the licencing requirements that will result from this categorization,
"This action will promote transparency, user safety, and much-needed ecosystem confidence,