Crypto Regulation In South Africa Should Not Scare Investors
According to two experts, the planned crypto regulation in South Africa is a welcome move and added that investors should not be scared away because of it.
They added that if the regulation is able to strike a balance between the need for stimulating interest in the crypto space and investor protection, then it could bring in more funds in South Africa and allow the country’s crypto ecosystem to burgeon.
Crypto regulations
The decision of the South African bank to regulate cryptocurrencies as a financial product and the impending regulation of the sector would be a positive move.
But, two experts said that this would only be the case if these regulations actually encourage crypto investment and not do the opposite.
Tax Consulting South Africa’s legal manager, Thomas Lobban and local crypto exchange Revix’s CFO, Greg Rodriguez said that crypto regulations in the country should not drive away investors.
These comments from the two experts come after Kuben Naidoo, the South African Reserve Bank (SARB)’s deputy governor, confirmed that crypto regulations would be implemented by the end of 2023.
Reports indicated that the SARB had decided to introduce crypto regulation after it had seen a substantial amount of money invested in these assets.
Their goal is to bring crypto into the mainstream.
Crypto as a financial product
Lobban reacted to the announcement from the deputy governor about the SARB regulating cryptocurrencies and said that now it was clear that they would be considered a financial product.
He said that they would have all the associated requirements and controls, which include tax, FIC (Financial Intelligence Centre), and exchange control compliance.
The FIC is an organization in South Africa that has been given the task of monitoring and also identifying money laundering, criminal activity, and terrorism financing.
Crypto is fluid and global
As far as Rodriguez is concerned, he said that Revix welcomes the crypto industry’s regulation and also considers it quite serious.
The CFO asserted that crypto is highly fluid and global, which means that it flows into markets where regulations are considered positive and out of the ones that do not.
Therefore, SARB and other regulatory authorities in South Africa should be careful about pursuing policies that may protect investors, but also overburden them.
The joint statement of the two experts said that balanced regulation could bring in more money to South Africa and help the crypto ecosystem flourish.
Rodrigues also said that one of the most important factors that should be considered by South African regulators is the issue of crypto custody and ownership.
He said that the claims made by crypto service providers about the security and quantity of their client’s assets should be verified externally and independently.
Lobban also stated that SARB needs to ensure the participation of the public and other stakeholders for ensuring that the policies it eventually develops factor in the interest of all the parties that will be affected.
This would ensure that comprehensive crypto regulation is introduced in South Africa.
