Fun

South African Central Bank Now Considers Cryptocurrency to Be a Financial Asset

News Feed - 2022-07-15 06:07:34

South African Central Bank Now Considers Cryptocurrency to Be a Financial Asset


The deputy governor of the South African Reserve Bank (SARB) recently said the institution has changed its position on cryptocurrency, and now regards it to be a financial asset which must be regulated as such. The SARB expects to have a cryptocurrency regulatory framework in place by the end of 2023. A Safer Crypto Ecosystem


The deputy governor of the SARB, Kuben Naidoo, recently said the institution had revised its stance on cryptocurrencies and is now looking to introduce a framework that governs crypto-related transactions. Naidoo, a member of SARB’s monetary policy committee, said such a framework would bring about a safer crypto ecosystem.


As explained in one report, when such a regulatory regime becomes effective, South African crypto investors — who have become accustomed to crypto scams — will be protected by the law. The SARB plans to have such a regulatory regime in place in 12 to 18 months’ time.




Meanwhile, Naidoo, who spoke at a webinar organized by PSG Konsult, is quoted in the report highlighting one of the key reasons the central bank changed its mind. He said: Our view has changed and we now regard [cryptocurrency] as a financial asset and we hope to regulate it as a financial asset. There has been a lot of money that has flowed in and there is a need to regulate it and bring it into the mainstream. Crypto Exchanges to Comply With Exchange Control Laws


The deputy governor, however, insisted that the central bank’s intention is not to pick winners or losers but to ensure that “investors have an adequate health warning and investor protection.” Naidoo claimed the use of crypto in money laundering and other illicit activities is a source of concern that needs to be addressed, hence the SARB’s change of mind.


On crypto exchanges, Naidoo said: “[They] would have to comply with exchange control laws such as anti-money-laundering and counter financing of terrorism rules. They would also have to comply with exchange contracts rules in the same way that people who trade in any currency and make cross-border transactions are subjected to those laws.”


When asked if the central bank had taken too long to make this decision about cryptocurrencies, Naidoo insisted his institution was taking the same approach as its counterparts in Australia, Singapore and the United Kingdom.


“We are watching them very closely and I don’t believe that we are behind the curve in virtual currency. Most central banks are focused on two things: regulating the broad crypto environment, and secondly, learning from it to see how it can take on board some of those lessons,” Naidoo added.


Register your email here to get a weekly update on African news sent to your inbox: Tags in this story anti-money laundering, cross border transactions, cryptocurrency regulatory framework, exchange control regulations, financial asset, Kuben Naidoo, South African Reserve Bank (SARB)


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. UN Report: Venezuela Ranks Third Among Countries With Most Crypto Adoption EMERGING MARKETS | 5 days ago Kenya Has Highest Proportion of Crypto Owning Citizens in Africa UNCTAD Data Shows EMERGING MARKETS | 6 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitfinex to Donate $1.3 Million Worth of BTC and USDT to Communities in El Salvador Next articleBillium, Dubai-Based Exchange, Announced a New, State-of-the-Art Platform Incorporating a Copy Trading Function Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

News Feed

HBAR Foundation Launches $250 Million Metaverse Fund to Entice Developers to Build on Hedera
HBAR Foundation Launches $250 Million Metaverse Fund to Entice Developers to Build on Hedera The HBAR foundation, a nonprofit organization designed to accelerate the development of
Dogecoin Hits Critical Zone—Here’s What 3 Leading Analysts Are Watching
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Report: Bitmex, Deribit Liquidate 3AC’s Positions — Negativity Continues to Plague the Crypto Hedge Fund
Report: Bitmex, Deribit Liquidate 3AC"s Positions — Negativity Continues to Plague the Crypto Hedge Fund Two days ago, Bitcoin.com News reported on the crypto hedge fund Three Ar
South Korean think tank cautions against crypto ETFs
Ezra Reguerra56 minutes agoSouth Korean think tank cautions against crypto ETFsSouth Korean researcher Bo-mi Lee highlights crypto volatility and risks, calling for more research and regulatory measures.663 Total views6
Elon Musk’s AI spinoff is seeking $4B that could level up Grok: Report
Martin Young3 hours agoElon Musk’s AI spinoff is seeking $4B that could level up Grok: ReportMusk is seeking investors to back his ChatGPT rival, Grok, which has entered a crowded AI chatbot marketplace.1318 Total view
Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals
Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals China’s crackdown on its crypto mining sector, launched earlier this year, caused a massive
Bitcoin, Ethereum Technical Analysis: BTC Prices Shaken as Fed Keeps Rates Unchanged
Bitcoin, Ethereum Technical Analysis: BTC Prices Shaken as Fed Keeps Rates Unchanged Cryptocurrency markets were volatile on Thursday as traders appeared to react to the Federal Re
Binance’s Russian successor CommEx to shut down in April
Helen Partz11 hours agoBinance’s Russian successor CommEx to shut down in AprilCommEx previously remained silent about its founders or key executives, but admitted having some former Binance Russia veterans in the team
Argentine Tax Authority AFIP Notified 4,000 Crypto Holders to Ammend Their Tax Statements
Argentine Tax Authority AFIP Notified 4,000 Crypto Holders to Ammend Their Tax Statements The Argentine Tax Authority (AFIP) is ramping up its fight against cryptocurrency-related
54% of institutional investors in Japan plan to invest in crypto: Survey
Ezra Reguerra10 hours ago54% of institutional investors in Japan plan to invest in crypto: Survey54% of Japanese institutional investors plan to invest in crypto over the next three years, citing portfolio diversificatio
Russia Starts Developing Mechanism for International Crypto Payments
Russia Starts Developing Mechanism for International Crypto Payments Financial authorities in Russia have begun work on a mechanism to facilitate the employment of cryptocurrencies
3 metrics suggest that Ethereum (ETH) price downside is not over
Nancy Lubale4 hours ago3 metrics suggest that Ethereum (ETH) price downside is not overEthereum price has had a rocky week and data suggests that more downside could be on the way.1652 Total viewsListen to article 0:00Al