South Africa Seeks Strict Crypto Regulations
- The country is concerned about the dilution of the central bank’s role with the rise in crypto.
As Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is penetrating into Africa, South Africa has revealed its stance on the crypto industry.
In a policy paper published this week, the Intergovernmental Fintech Working Group (IFWG) recommended Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to “remain without legal tender status.”
Members of the IFWG include the South African Reserve Bank, the Financial Sector Conduct Authority and the National Treasury.
The IFWG also referred to a survey that shows that 10.7 percent of South African internet users have some investments in Bitcoin, making the regulations of the sector a priority.
With this paper, the South African regulators are attempting to draft the first crypto-specific framework bringing strict financial oversight, a licensure structure, and closer cash flow monitoring.
“Crypto assets and the various activities associated with this innovation can no longer remain outside of the regulatory perimeter,” the policy paper stated.
Aligning with the FATF
The policy paper also suggested implementation of the recommendations made by the Financial Action Task Force (FATF), the “new technologies” anti-money laundering measures, and the so-called “Travel Rule” in particular.
Also, a strict domestic oversight on the booming cryptocurrency industry is necessary, according to the policy paper.
The IFWG is also seeking a ban on using crypto as a settlement tool within the country’s financial infrastructure. It is also concerned about the impact of cryptocurrencies on fiat currencies.
“The central bank’s role in ensuring an efficient monetary system could become less effective, as the demand for fiat currency would decrease and crypto assets would effectively compete with fiat currencies,” the paper added.
For initial coin offerings (ICO), the paper also proposed their alignment with the existing traditional securities governance schemes. However, payment and utility token issuers have to submit their whitepaper to the regulators.
As Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is penetrating into Africa, South Africa has revealed its stance on the crypto industry.
In a policy paper published this week, the Intergovernmental Fintech Working Group (IFWG) recommended Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to “remain without legal tender status.”
Members of the IFWG include the South African Reserve Bank, the Financial Sector Conduct Authority and the National Treasury.
The IFWG also referred to a survey that shows that 10.7 percent of South African internet users have some investments in Bitcoin, making the regulations of the sector a priority.
With this paper, the South African regulators are attempting to draft the first crypto-specific framework bringing strict financial oversight, a licensure structure, and closer cash flow monitoring.
“Crypto assets and the various activities associated with this innovation can no longer remain outside of the regulatory perimeter,” the policy paper stated.
Aligning with the FATF
The policy paper also suggested implementation of the recommendations made by the Financial Action Task Force (FATF), the “new technologies” anti-money laundering measures, and the so-called “Travel Rule” in particular.
Also, a strict domestic oversight on the booming cryptocurrency industry is necessary, according to the policy paper.
The IFWG is also seeking a ban on using crypto as a settlement tool within the country’s financial infrastructure. It is also concerned about the impact of cryptocurrencies on fiat currencies.
“The central bank’s role in ensuring an efficient monetary system could become less effective, as the demand for fiat currency would decrease and crypto assets would effectively compete with fiat currencies,” the paper added.
For initial coin offerings (ICO), the paper also proposed their alignment with the existing traditional securities governance schemes. However, payment and utility token issuers have to submit their whitepaper to the regulators.