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South Africa Plans New Crypto Regulations: Key Factors to Watch

crypto regulations

crypto regulations

Over the past few years, the popularity of cryptocurrencies has increased at an exponential rate, and due to that enormous growth, crypto regulations have become an important part of the discourse. In many countries across the world, cryptocurrencies are now legal, and millions of people trade in a wide range of assets every day.

All About New Regulations

It has now emerged that the South African Reserve Bank (SARB) is all set to introduce new regulations when it comes to the use of cryptocurrencies. The bank is trying to bring in new rules that will make sure that people in the country are not able to violate currency controls.

According to reports in the local media, discussions surrounding crypto regulations have been going on for around five years now. Kuben Naidoo, who is the deputy governor of the SARB, stated that it is believed that they are going to come into effect at some point in the first quarter of 2020.

Over the years, governments have often tried to steer clear of efforts to regulate the crypto sector. However, the number of users has grown rapidly within that time, and it is no wonder that the South African authorities are preparing to bring in some order into the sector.

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That being said, the steps being taken in the country regarding crypto regulations are certainly going to be unpopular with the crypto industry and the wider crypto community. Prior to these statements from the SARB, the FirstRand Bank decided to no longer do business with digital currency exchanges.

The bank in question is one of the biggest in South Africa, so its decision is a disturbing one. A prominent voice in the crypto community in the country stated, “The implications of the Sarb clamping down on cryptocurrency use for the purpose of stricter capital controls are far-reaching and alarming.”

Featured image: DepositPhotos © michaeljung

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