In South Africa, two experts said they welcomed regulation over cryptocurrency, but cautioned that this should not scare investors. Investing in cryptocurrencies if regulations are balanced between the need to protect investors and stimulate interest, in South Africa this could lead to money flowing to while developing the country’s thriving crypto ecosystem.
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According to experts, cryptocurrency regulation in South Africa should not scare off investors
In South Africa, two experts say they welcome regulation on cryptocurrency
Cryptocurrency in South Africa as a financial product
South Africa’s impending cryptocurrency policies as well as the central bank’s decision to regulate cryptocurrency as a monetary product is welcome as long as this does stimulate interest in crypto investment, two experts have said.
In their joint assertion shared with Bitcoin.com News, both Thomas Lobban, the legal manager at Tax Consulting South Africa and Greg Rodrigues, the CFO at a nearby crypto exchange, Revix, assert that any such regulations must not scare away investors.
The remarks by way of Lobban and Rodrigues follow reports quoting the deputy governor of the South African Reserve Bank (SARB) Kuben Naidoo who confirmed that the u . s . expects to have regulations in place by give up of 2023. As reported by Bitcoin.com News, the SARB had resolved to regulate cryptocurrencies after it had discovered that “a lot of money” was flowing into these assets. The objective is to bring them “into the mainstream.”
Reacting to Naidoo’s remarks and his subsequent announcement of when the SARB plans to start regulating cryptos, Lobban said:
Now we know crypto will be seen as a monetary product with all the associated controls and requirements in place, including FIC [Financial Intelligence Centre], tax and trade control compliance.
The FIC is a South African government that is tasked with the monitoring as well as the identification of crook activity, money laundering and terrorism financing.
Global cryptocurrency with high flexibility
For his part, Rodrigues stated regulation of the crypto industry is something that Revix now not only welcomes but also takes seriously.
“Crypto is international and highly fluid, tending to flow into markets where guidelines are welcoming, and just as easily out of those that are not,” the CFO said.
Therefore, South African regulators inclusive of the SARB are urged to be wary of pursuing policies that defend investors and overburden them at the same time. According to the two experts’ joint statement, when regulation is balanced, this “could see money stream into South Africa while growing the country’s burgeoning crypto ecosystem.”
Meanwhile, Rodrigues pointed to the problem of crypto ownership and custody as one important factor that South African regulators additionally need to consider. He called for the external unbiased verification of crypto service providers’ claims relating to the quantity and protection of clients’ assets.
Lobban suggested that the SARB needs to engage in public and different stakeholders to ensure the policies it develops are informed by using the interests of all parties who will be affected by them.