By Staff Writer
South Africa’s financial watchdog recommended that cryptocurrency remains without a legal tender status which is the guidelines for what would become the country’s first absolute crypto laws.
South Africa’s “Intergovernmental Fintech Working Group” (IFWG), the burgeoning crypto-asset sector – one survey suggests 10.7 percent of South African internet users invest in bitcoin – is past due for strict financial oversight, a licensure structure, closer cash flow monitoring and more.
The IFWG said, “Payments using crypto assets will, in the interim period, be subjected to a regulatory sandbox approach”. On the topic of promoting capital, the paper says that Initial Coin Offering regulations “must be aligned, as far as possible” with South Africa’s traditional securities governance schemes.
The laws would execute disciplinary crypto intentions locally. It would summarize the Financial Action Task Force’s “new technologies” anti-money-laundering and “Travel Rule” suggestions, two international baseness for systematizing crypto business. The policy recommendations follow IFWG’s previous crypto consultation paper, issued in Jan 2019. IFWG’s newest recommendations are open for comment through May 15.
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