Two experts have said they welcome South Africa’s planned regulation of cryptocurrency but warned this should not scare away investors. If the regulation is balanced between the need to protect investors and stimulating interest in crypto investment, this “could see funds stream into South Africa while growing the country’s burgeoning crypto ecosystem.
The remarks by Lobban and Rodrigues follow reports quoting the deputy governor of the South African Reserve Bank Kuben Naidoo who confirmed that the country expects to have regulations in place by end of 2023. Asby Bitcoin.com News, the SARB had resolved to regulate cryptocurrencies after it had observed that “a lot of money” was flowing into these assets. The objective is to bring them “into the mainstream.
Now we know crypto will be seen as a financial product with all the associated controls and requirements in place, including FIC [Financial Intelligence Centre], tax and exchange control compliance. “Crypto is global and highly fluid, tending to flow into markets where regulations are welcoming, and just as easily out of those that are not,” the CFO said.