A Growing Market for Crypto Exchanges
South Africa’s economy has been struggling this 2018. The country’s fiat currency, the Rand, hit a low in June after a massive selloff in markets happened. The selloff, however, caused many South Africans to take a closer look at cryptocurrencies.
Recently, South Africa installed its very first multi-currency crypto ATM. Bitcoin is also one of the most popular internet searches in South Africa.
Cryptocurrency exchanges are experiencing increased patronage from South African users. Firms like Luno and Paxful enable local investors to buy and sell bitcoin. Luno also offers BTC/rand and ETH/rand trading pairs.
Other people prefer to diversify. For these investors, Coindirect offers altcoins like Litecoin, Bitcoin Cash, and Ripple. Coindirect also has ERC-20 tokens on offer for local investors.
South Africa-based assets management firm Sygnia has also expressed interest in cryptocurrencies and is preparing to launch their own cryptocurrency trading platform in the country later this year. Sygnia’s CEO, Magda Wierzycka, revealed that their platform, dubbed “SygniaCoin” will offer trading services beyond simple buying and selling of digital assets. Syngia’s trading platform and plans are but another sign of South Africa’s continued adoption of cryptocurrencies.
Crypto and Regulation In South Africa
Meanwhile, South Africa’s central bank said in May of 2018 that South African law prescribed the central bank as the only financial institution with the authority to issue and manage currency in the country. The bank then declared that cryptocurrencies like Bitcoin and others were not recognized by law. In a move away from their previous statements, the central bank is reportedly considering setting up a regulatory framework for the country’s booming cryptocurrency market.
By far the most important law passed related to crypto in South Africa came in April 2018. The South African Revenue Service unveiled a new framework for cryptocurrency taxes. With these developments from the government’s financial arms, the crypto environment in South Africa has become friendlier, encouraging growth, and the current market boom is proof.