The South African Reserve Bank affirmed that it anticipates completing the formulation of South Africa’s cryptocurrency regulatory framework by the end of 2023.
The African country’s central bank declared this development last week via its Deputy Governor, Kuben Naidoo. We think the forthcoming release of South Africa’s cryptocurrency regulatory framework next year is a milestone event in the virtual currency space.
We believe our followers will benefit considerably from reading this news, especially if they are investors and traders from the country situated on the African continent’s southernmost tip. Hence, we are posting this update on our portal.
Naidoo cited that South Africa will release its virtual currency regulatory framework next year, per the report posted online by Nigerian newspaper Punch Newspapers.
The South African Reserve Bank’s Deputy Governor confirmed that the central bank had modified its stance on cryptocurrencies. He said the government institution now regards virtual currency as a financial asset and intends to regulate it as such.
Naidoo also remarked that considerable funds had flowed in via cryptocurrency transactions. With this scenario, he pointed out that there is a need to control virtual assets and bring them into the mainstream financial scene.
Naidoo explained that South Africa’s cryptocurrency regulatory framework involves the South African Reserve Bank realizing the need to resolve cryptocurrency’s utilization in illegal activities.
He mentioned money laundering is among these crimes, which altered the central bank’s position. The South African Reserve Bank’s Deputy Governor maintained that his institution plans to ensure investors have sufficient protection.
He also said South Africa’s cryptocurrency regulatory framework coming in 12 to 18 months would result in a safer virtual currency ecosystem.
The South African central bank official mentioned that cryptocurrency exchanges would have to comply with exchange contract rules, similar to how individuals making cross-border transactions and trading currencies are subjected to those regulations.
These companies also need to follow exchange control laws like counter-financing of terrorism and anti-money laundering rules. Naidoo remarked that most central banks concentrate on two matters.
One is learning from the broad cryptocurrency environment to see how it can take on board some of those lessons, and the other is regulating this setting.
Naidoo pointed out that the South African Reserve Bank was taking the same approach as its counterparts in the United Kingdom, Singapore, and Australia when asked if his institution had taken quite a long time to decide about crypto-assets.
Moreover, the South African central bank deputy governor said they are very closely monitoring cryptocurrencies. He relayed he does not believe his country is behind the curve in the virtual currency field.
We are pleased to learn about South Africa’s cryptocurrency regulatory framework getting released late next year. We think the African nation is making an important step that can aid its citizens substantially.
After all, we gathered that South African cryptocurrency investors have become accustomed to virtual asset scams. We believe these people will obtain the necessary protection they deserve with South Africa’s cryptocurrency regulatory framework coming in late 2023.