South Africa is expected to update its stance on cryptocurrencies in the near future to establish a regulatory framework for the growing industry. The country’s central bank, the South African Reserve Bank (SARB), has been working with the country’s Financial Services Board (FSB) to establish a regulatory framework for cryptocurrencies and their underlying technology, blockchain, in South Africa.
In a move that could set a precedent for other countries, South Africa is set to revise its national policy position on cryptocurrency. The country’s central bank, the Reserve Bank of South Africa (RBS), has been studying the emerging technology to determine how it could be regulated. According to the South African Constitution, the bank must consider the safety and soundness of the economy before considering the use of any foreign currency.
South Africa has announced plans to revise its national policy position on cryptocurrency. The country will work with the G20 to develop an approach to cryptocurrency in the context of anti-money laundering and combating the financing of terrorism.. Read more about cryptocurrency regulation south africa and let us know what you think.South African financial regulators are laying the groundwork for progressive and structured regulation of cryptocurrencies. The move marks a turnaround from the approach that has been widely adopted over the past seven years and was prompted by the growing interest in cryptocurrencies among retailers in the country. In a position paper published on 11. In June, the Intergovernmental Financial Technology Working Group (IFWG), under the auspices of the Crypto Asset Regulation Working Group, presented a roadmap for implementing a regulatory framework focused on crypto asset service providers (CASPs). South Africa’s initial national policy on cryptocurrencies was cautious, but not intrusive. In 2014, the Department of Finance issued a public statement on this issue, in collaboration with the South African Reserve Bank and the country’s financial regulator, as well as financial intelligence and tax authorities. His tone was careful but discreet. It warned the public that they could trade cryptocurrencies at their own risk and that they would have no legal protection or recourse in the event of trouble. Commentators point out that a number of factors, including the rise of the South African cryptocurrency market, which reached over R2 billion ($147 million) in daily exchange value earlier this year, have made this previous policy untenable. The new IFWG document highlights that despite the introduction of a structured regulatory framework, crypto assets remain inherently risky and volatile and the likely financial losses associated with crypto trading activities remain high. Six fundamental principles will underpin the country’s evolutionary approach. These include using an activity-based perspective to ensure that the same activity, same risk principle guides regulators’ decisions, applying measures that are proportionate to the risk, taking a collaborative approach to regulating crypto assets, continually updating international best practices, and promoting digital financial literacy among consumers. The paper also contains 25 recommendations for the regulation of cryptocurrencies that address three main problem areas: Fight against money laundering and terrorist financing, cross-border financial legislation and implementation of financial sector legislation. The latter means that the South African Financial Conduct Authority will be responsible for preventing market abuse, such as fraud and market misconduct, and for taking action against offenders in the relevant sector. Related: Liquidators call for comprehensive investigation into alleged bitcoin construction in South Africa Concurrently with the publication of the document, the IFGW issued a press release outlining its strategy and expressing concern about the nature of the asset class and the surrounding ecosystem. IFGW pointed out that decentralization is a minus rather than a plus, as consumers and merchants have no recourse to a centralized authority or entity that could fix user errors, such as using the wrong cryptocurrency wallet address. IFGW also remains concerned about the manipulative nature of many cryptocurrency marketing materials, asset price volatility and fraudulent activities such as Ponzi schemes. This year’s largest Ponzi scheme involves a company that targeted bitcoin (BTC) traders and collected 23,000 BTC in the investor accounts of 26,000 participants around the world.South Africa’s central bank, the Reserve Bank of South Africa (RBA) has announced it will take a hard stance on cryptocurrency. The bank has announced plans to issue a “guideline” within 30 days that will define cryptocurrency activities as “money services businesses”. This will effectively criminalise the cryptocurrency industry within the country.. Read more about bitcoin pyramid scheme south africa and let us know what you think.
cryptocurrency regulation south africacryptocurrency in south africabitcoin pyramid scheme south africacrypto assets regulatory working groupposition paper on crypto assetssarb crypto,People also search for,Privacy settings,How Search works,cryptocurrency regulation south africa,advantages and disadvantages of recognising cryptocurrency as legal tender in south africa,cryptocurrency in south africa,bitcoin pyramid scheme south africa,crypto assets regulatory working group,position paper on crypto assets,sarb crypto,why is ethereum spiking