South Africa is looking to implement new regulations on crypto, and soon
According to Bitcoinist.com, South African regulators are in a rush to implement new policies on Bitcoin and other digital assets. To this end they have released a consultation paper, outlining various thoughts and proposals, with the hope of having new regulations in place by or around the end of Q1, 2019.
To enact these regulations, the Intergovernmental FinTech Working Group (IFWG) has formed a branch called the Crypto Assets Regulatory Working Group (CARWG), made up of members from the nation's reserve bank as well as the treasury. The consultation paper is the result of the findings of this working group.
Within the paper, the group acknowledges that crypto could have some use as a diversity investment not tied to a single nation's economic status, but also spends a lot of time focusing on the current problems with cryptocurrency. Notably, the paper says no evidence was found that crypto offers any benefits to traditional payment options:
"Although the potential benefits of crypto assets that are related to lower transactional costs, greater speed and enhanced security of transactions are often touted, actual use cases thus far are yet to demonstrate that crypto assets payments are consistently faster, safer and cheaper than existing options."
This is odd because a basic overview of a variety of crypto's would quickly prove that there are in fact improvements to all of these factors, depending on the currency being discussed.
In any event, the paper is up for public commentary until February 15th, at which time decisions will be made concerning the future regulatory framework within South Africa as pertains to crypto.
We will have to wait and see what is decided, but until then stick with Chepicap for all updates on the path to regulation in South Africa!
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