South Africa To Continue With Cryptocurrency Operations Amidst The Confusion

Cryptocurrency

As per the latest report, The SARB or South African Reserve Bank in its consultation paper has clearly defined the benefits of cryptocurrency operation in the country despite foreseeing some risks which are associated with it. The paper was developed after the top officials of the country’s government agencies met earlier this month. The government of South Africa claimed that it has no intention to discontinue or ban the current cryptocurrency operation or trading in the country at this point of time as clearly stated in the document which is titled as Consultation Paper on Policy Proposals for Crypto Assets.

The Consultation Paper on Policy Proposals for Crypto Assets further states that they are in the process to propose all digital assets trading platforms and exchanges and other payment service providers, custodial services and crypto-based ATMs, to register with IFWG or Intergovernmental FinTech Working Group. The South African government recently introduced IFWG with the sole purpose of promoting finance and technology innovation and developments while maintaining constant functioning of the nation’s economy and the smooth working of the financial markets.

According to the journal, all the digital asset firms and companies dealing in cryptocurrencies operation along with other small time crypto-related businesses are required to adhere to AML or Anti-Money Laundering and CFT or Counter-Terrorism Financing mandates from the Financial Intelligence Centre Act.

The particular paper on consultation has been developed jointly by country’s premier major state agencies, such as Financial Sector Conduct Authority (FSCA), the Financial Intelligence Centre (FIC), South African Revenue Service (SARS), National Treasury (NT) and the SARB, the central bank of South Africa. The document would be open for public review and feedback by mid of next month as per the agency.

Earlier this month, as per a leading news agency, it was reported that the South African government would be launching a specially created regulatory group dedicated to cryptocurrencies and blockchain related operations. The final research paper on the industry is yet to be released by the group as stated by the country’s Minister of Finance.

Mid of last year, the SARB claimed that it has been successful in testing Proof-of-Concept (PoC) for a payment system of the interbank which tokenizes fiat currency using the platform of Quorum which is a private blockchain of Ethereum.

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