South African professor accuses central bank official of spreading misinformation hurting crypto industry – Bitcoin News

South African professor Stephen Boeke Sedley has described the South African Deputy Governor’s claim as “babbling” that “90% of cryptocurrency transactions” are illegal. The professor also accused the central bank’s senior official of publishing inaccurate information that “causes immeasurable damage to an important new industry.”

Only 0.15% of cryptocurrency transactions are related to illicit activity

South African professor and author Stephen Boeke Sedley has criticized Kobin Naidoo, the country’s deputy central bank governor, for claiming that “90% of cryptocurrency transactions” are illegal. Calling Naidoo’s allegations a “Balderdash”, Sidley insisted that “real statistics are continually compiled and reported by various data analytics companies” and demonstrated that only a small portion of crypto transactions are linked to illicit activities.

In an opinion article published By the Daily Maverick, Sedley accuses the Deputy Governor of the South African Reserve Bank (SARB) of spreading “disinformation that ends up in the headlines and does untold damage to an important new industry.” To support this theory, Sidley points to data provided by Chainalysis that only 0.15% of crypto transactions are associated with illicit activity.

For Sidley, who is also a co-author of the book Beyond Bitcoin: Decentralized Finance and the End of Banks, this number is much lower when compared to illicit transactions involving fiat currency.

Moreover, the number of transactions associated with illegal transactions in the real world of the rand and the dollar, where we live, is 5%. This is 50 times higher than cryptocurrencies (and these are the only ones we know about).”

According to the professor, since blockchain transactions are public, it is impossible to commit a crime that goes unnoticed. This level of transparency makes “tracking of crypto crime proceeds” much easier, Sedley added.

Attempting to organize a new asset class with the old laws will not work

Meanwhile, Sidley also offered his thoughts on SARB’s intention to regulate cryptocurrency as a financial asset. As previously reported by News, SARB expects to have a regulatory framework for cryptocurrency in place by the end of 2023. According to Sedley, such a regulatory framework removes the uncertainty currently afflicting the entire industry and allows institutions like banks to get in.” This is the origin and service space.

While such a regulatory framework is expected to create a certain level of certainty, Sedley said it would reveal a bigger problem awaiting the industry – regulating cryptocurrency with laws passed more than a century ago. He said:

What Sarb (and every other regulator) is trying to do is convert cryptocurrency into existing regulations designed several decades ago for assets that are hundreds of years old — stocks, currencies, commodities, collectibles and the like. It’s not going to work.

Seidley insisted that these completely new asset classes need to be “properly defined before the entire field can be rationally organized”.

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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

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