Regulation of Cryptocurrency in South Africa Should Not Scare Away Investors Experts Say – Regulation Bitcoin News

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 Financial Product of Crypto

South Africa’s impending cryptocurrency regulations as well as the central bank’s decision to regulate cryptocurrency as a financial product is welcome as long as this does stimulate interest in crypto investment, two experts have said.

Thomas Lobban, Tax Consulting South Africa’s legal manager and Greg Rodrigues the Revix CFO shared their collective statement with Bitcoin.com News.

Lobban and Rodrigues’ remarks follow reports from Kuben Naiduo (South African Reserve Bank) who stated that they expect to have regulations in place before the end of 2023. As reported by 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.”

Reacting to Naidoo’s comments and his subsequent announcement of when the SARB plans to start regulating cryptos, Lobban said:

It is now clear that crypto will be considered a financial product, with all controls and requirements. [Financial Intelligence Centre]Compliance in tax and exchange controls.

South African government, the FIC, is charged with monitoring criminal activity and money laundering as well as terror financing.

‘Crypto Is Global and Highly Fluid’

Rodrigues stated that regulation of the cryptocurrency industry was something Revix does not just welcome but takes very seriously.

“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.

South African regulators, including the SARB, are advised to avoid pursuing policies that simultaneously protect investors and burden them. According to the two experts’ joint statement, when regulation is balanced, this “could see funds stream into South Africa while growing the country’s burgeoning crypto ecosystem.”

Rodrigues highlighted the importance of cryptocurrency ownership and custody, which South African regulators should also take into account. He called for the external independent verification of crypto service providers’ claims relating to the quantity and security of clients’ assets.

Lobban suggested that the SARB needs to engage in public and other stakeholders “to ensure the policies it develops are informed by the interests of all parties who will be affected by them.”

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.