South Africa to Develop a Cryptocurrency Regulation
South Africa, a country that so far had had a non-intervention policy towards cryptocurrencies, has just announced it is reconsidering its opinion about the assets and aims to develop a regulatory framework.
In a paper published last Friday by South Africa’s Intergovernmental Fintech Working Group (IFWG), the authorities of the country are working on the development of a regulatory framework for cryptocurrency asset providers.
We should remember that this is a drastic change in the country’s policy towards cryptocurrencies, as until now it has decided to simply sit and wait, without directly intervening in the industry. The authorities of South Africa have previously issued warnings about the risks involved in crypto trading, but without going beyond that.
However, the authorities have changed their mind, probably because of the increasing popularity of the crypto market in South Africa, whose daily trading value exceeded $147M this year.
While South Africa seems to be set to develop a regulatory framework, the authorities still believe cryptocurrencies are “inherently risky and volatile.”