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South Africa’s FSCA to introduce new Crypto regulation next year

Pretoria | According to South Africa’s financial regulator, cryptocurrency regulations are expected to be put into place during the first few months of 2017.

  • According to FSCA commissioner Unathi Kamlana in an interview on Friday, the guidelines, developed in collaboration with peers including the prudential authority and the financial surveillance board, would outline how trading in cryptocurrencies should be performed.
  • In the wake of two large crypto frauds that originated in South Africa, the South African government has implemented laws.
  • Cryptocurrencies aren’t yet a systemic concern to the financial services sector, but FSCA sees them as an asset rather than a currency.
  • According to Kamlana, the regulator is keeping an eye on the South African Reserve Bank’s ambitions to create its own stable coin.
  • Because of their stability and reliability, central bank-created stable coins are the ideal option for stable currencies.

According to FSCA commissioner Unathi Kamlana in an interview on Friday, the guidelines, developed in collaboration with peers including the prudential authority and the financial surveillance board, would outline how trading in coins like Ethereum, XRP, and Litecoin should be performed.

It’s also worth looking into how the currencies interact with traditional financial instruments, the risks they pose to bank balance sheets, and whether they endanger fiscal stability.

It’s our goal to intervene when we believe that things are being offered to potential clients that they don’t comprehend and are thus possibly dangerous, Kamlana said in an interview. It’s important that we don’t simply give them the benefit of the doubt.

In the wake of two large crypto frauds that originated in South Africa, the South African government has implemented laws.

Many countries around the world have stepped up their efforts to keep digital currency providers from operating unchecked because of the rise of digital currencies in recent years.

Cryptocurrencies aren’t yet a systemic concern to the financial services sector, but FSCA sees them as an asset rather than a currency. According to Kamlana, the regulator is keeping an eye on the South African Reserve Bank’s ambitions to create its own stable coin.

As for retail investors, “I suppose if I were to give advise, I’d tell them to wait and watch what the central bank does in the process of its job,” he added. Because of their stability and reliability, central bank-created stable coins are the ideal option for stable currencies.

South Africa’s FSCA to introduce new Crypto regulation next year

Staff Writer

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