Experts Advise South Africa On Planned Crypto Regulation
Two experts have expressed support for South Africa’s proposed regulation of cryptocurrencies. However, they cautioned that this regulation should not scare off investors.
The crypto rule may see cash flowing into South Africa while also developing the nation’s cryptocurrency ecosystem. Meanwhile, this can only happen if the regulation strikes a balance between the attraction of investors and investors’ protection.
Cryptocurrencies As Financial Products
Furthermore, the specialists said South Africa’s upcoming crypto rules are a good step. Also, the central bank’s intention to regulate cryptocurrencies as financial products will benefit the people.
The specialists are Thomas Lobban, an executive at Tax Consulting firm, and Greg Rodrigues, CFO of exchange, Revix. Recently, Kuben Naidoo, the deputy gov of the SARB (South African Reserve Bank), said the country is working on crypto regulation.
According to him, the SARB has decided to oversee virtual currencies after noticing a large interest in these assets. Naidoo said the goal is to “integrate” cryptos into society. Lobban stated that:
“Cryptocurrencies will be treated as financial products with all necessary checks and balances by the Financial Intelligence Centre (FIC).”
Meanwhile, the FIC is a government agency entrusted with identifying and supervising money theft and criminal activities. According to Rodrigues, the Revix exchange welcomes and takes seriously any regulation of the cryptocurrency sector.
The Need For A Balanced Regulation
The CFO of Revix acknowledged the volatility and popularity of digital currencies. He added that crypto firms always flow into countries with favorable regulations. Also, they are quick to leave countries with unfavorable regulations.
Therefore, both experts advised that South African authorities exercise caution when adopting crypto regulations. This also includes the country’s central bank.
The regulations must safeguard investors and not place undue levies on them. They said that balanced legislation would attract more income and investment to the country.
Additionally, Rodrigues mentioned the issue of cryptocurrency custody and ownership as a crucial aspect that South African policymakers should take into account. He demanded that a third party should verify the assertions made by cryptocurrency service providers about the amount and security of their client’s assets.
This is to ensure that they are not lying to investors. Also, it will guarantee the protection of investors who invest in cryptocurrencies.
However, Lobban advised that the SARB involve the public and other participants when making the regulations. This is to ensure the SARB creates regulations that meet the concerns and needs of investors and crypto firms.
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