South Africa plans phased regulation of cryptocurrency

South African authorities have put all necessities in place to check crypto assets, as the country looks to put an end to cases of fraud, while also bettering the process of international exchange.

As these digital currencies gain prominence in the mainstream finance sector of many parts of the world, the service providers in this relatively new sphere are being subjected to more scrutiny. 

The recent crash of certain Ponzi-like bitcoin scheme in the country in 2020 and various instances of abuse in the sector, among many others, are some of the reasons why South Africa’s Intergovernmental Fintech Working Group said on Friday that more stringent restrictions must be imposed.

“Crypto assets will be brought into the South African regulatory purview in a phased and structured manner,” it stated. “It is, however, reiterated that with or without regulation, crypto assets remain inherently risky and volatile.”

“Crypto assets will be brought into the South African regulatory purview in a phased and structured manner,” it stated. “It is, however, reiterated that with or without regulation, crypto assets remain inherently risky and volatile.”

The group published a document detailing its recommendations and suggested steps to be taken towards formulating a regulatory framework. The publication also stresses the need for the rising interest in these new currencies among the citizens to be met with adequate sensitization and financial literacy campaigns.