Cryptocurrency regulation in South Africa should not scare investors – experts say – Bitcoin News Regulatory

Two experts said they welcomed South Africa’s planned regulation of cryptocurrency, but cautioned that this should not scare investors. If regulation is balanced between the need to protect investors and stimulate interest in investing in cryptocurrencies, it could lead to “money flowing into South Africa while developing the country’s burgeoning crypto ecosystem.”

Crypto as a financial product

Two experts said that the imminent cryptocurrency regulation in South Africa as well as the central bank’s decision to regulate cryptocurrency as a financial product is welcome as long as it stimulates interest in investing in cryptocurrencies.

In their joint statement shared with News, Thomas Le Pen, legal director at Tax Consulting South Africa, and Greg Rodrigues, chief financial officer of a local crypto exchange, Revix, emphasized that none of these regulations should scare investors.

Le Pen and Rodriguez’s comments come on the heels of reports quoted by South African Reserve Bank (SARB) Deputy Governor Kobin Naidoo confirming that the country expects to have regulations in place by the end of 2023. As reported by News, the SARB has decided to regulate Cryptocurrency after noticing that “a lot of money” was flowing into these assets. The goal is to get them “into the mainstream”.

In response to Naidoo’s comments and his subsequent announcement of when the SARB plans to start regulating cryptocurrency, Le Pen said:

We now know that cryptocurrency will be seen as a financial product with all the controls and requirements attached to it, including the FIC. [Financial Intelligence Centre]Tax and exchange control compliance.

The FIC is a South African government tasked with monitoring and identifying criminal activity, money laundering and terrorist financing.

Cryptocurrency is global and highly flexible

For his part, Rodriguez said that regulating the cryptocurrency industry is something that Revix not only welcomes but also takes very seriously.

“Cryptocurrencies are global and highly resilient, and tend to flow into markets where regulation is welcome, and just as easily than where they are not,” said the CFO.

Therefore, regulators in South Africa including the SARB are urged to be wary of following policies that protect and burden investors at the same time. According to the two experts’ joint statement, when regulation is balanced, it can lead to “money flowing into South Africa while the country’s thriving crypto ecosystem grows.”

Meanwhile, Rodrigues cited the issue of cryptocurrency ownership and custody as an important factor that South African regulators also need to consider. It called for independent external verification of crypto service providers’ claims regarding the amount and security of customer assets.

Le Pen suggested that the SARB’s governing body needs to engage with the public and other stakeholders “to ensure that the policies it develops are aware of the interests of all parties that will be affected.”

Register your email here to get a weekly update of African news sent to your inbox:

Tags in this story

Crypto Ecosystem, Cryptocurrency Regulation, Exchange Control, Financial Intelligence Center, Greg Rodrigues, Kuben Naidoo, Money Laundering, Revix, Reserve Bank of South Africa, Tax Advisory South Africa, Thomas Le Pen

What do you think of this story? Tell us what you think in the comments section below.

Terence Zimoara

Terence Zimoara is a Zimbabwean award-winning journalist, author and writer. He has written extensively about the economic problems of some African countries as well as how digital currencies can provide Africans with an escape route.

photo credits: Shutterstock, Pixabay, Wikicommons

disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني.

زر الذهاب إلى الأعلى