The two experts said they welcomed South Africa’s planned cryptocurrency regulation, but warned that it should not scare investors. If regulation strikes a balance between the need to protect investors and stimulating interest in crypto investment, this could “allow money to flow into South Africa while growing the country’s burgeoning crypto ecosystem. You can see the ‘.
Cryptography as a financial product
South Africa’s imminent cryptocurrency regulation and the central bank’s decision to regulate cryptocurrencies as a financial instrument are welcomed as long as this stimulates interest in cryptocurrency investment, two experts said.
In a joint statement shared with Bitcoin.com News, Thomas Lobban, legal manager at Tax Consulting South Africa, and Greg Rodrigues, CFO of local crypto exchange Revix, said such regulations scared investors. I insist that it will not be.
Lobban and Rodrigues’ remarks follow a report citing South African Reserve Bank (SARB) Deputy Governor Kuben Naidoo confirming the country plans to introduce regulation by the end of 2023. report According to Bitcoin.com News, the SARB has resolved to regulate cryptocurrencies after seeing “significant amounts of money” flowing into these assets. The aim is to bring them “into the mainstream”.
Regarding Naidoo’s comment and the subsequent announcement by SARB of when cryptocurrency regulation will begin, Lobban said:
We now know that crypto is considered a financial instrument with all relevant controls and requirements in place, including FIC [Financial Intelligence Centre]Tax and currency control compliance.
FIC is the South African government responsible for monitoring and identifying criminal activity, money laundering and terrorist financing.
“Cryptocurrencies are global and highly liquid”
Rodrigues said that the regulation of the cryptocurrency industry is not only welcomed by Revix, but taken seriously.
“Cryptocurrencies are global and highly liquid, tending to flow into markets where regulation is welcome and outflows with equal ease from markets where regulation is not,” said the CFO.
Therefore, South African regulators, including SARB, are urged to be cautious in pursuing policies that protect investors while at the same time overburden them. According to a joint statement by two experts, if the regulation is balanced, “it is possible that money will flow into South Africa while growing the fast-growing South African crypto ecosystem.”
Rodriguez, meanwhile, pointed out the issue of crypto ownership and storage as one of the key factors that South African regulators also need to consider. He sought external and independent verification of the crypto service provider’s claims regarding the amount and security of the client’s assets.
Lobban states that the South African Reserve Bank needs to engage with public and other stakeholders to ensure that the policies developed by SARB are informed in the interests of all affected parties. Suggested.
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