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The South African Reserve Bank (SARB) has recently declared that it will take a more tactical and rigorous approach to the cryptocurrency sector. Issued as a consultation document, the national bank outlines the risks and benefits of cryptocurrency and explains how changes will be made in order to reduce risks and take advantage of benefits.
Coindirect's views on cryptocurrency regulations
The CPO co-director Stephen Young commented on the news, stating that the exchange is in support of the regulations established by SARB:
"Coindirect welcomes the recent amendments to the recommendations of the International Financial Action Task Force (FATF): Having clear regulation that helps protect consumers while enabling the development and growth of this nascent industry is a positive step that will help to accelerate adoption and promote responsible innovation ".
Coindirect, which operates from the London and Cape Town offices, is early and open in its approach to the cryptocurrency industry, according to its website:
"Coindirect has the track record, infrastructure and expertise to offer you the best digital currency experience the world can offer.To be sure to meet international standards in terms of AML and CFT, our company is registered as a designated company with the Isle of Man Financial Services Authority ".
The international standards with which Coindirect adheres include the stricter rules on which the SARB is moving. In order to implement the techniques that will help fight terrorist financing (CFT) and anti-money laundering (AML), Coindirect supports regulations that align with its point of view of protecting its customers.
In the consultation document, SARB outlines the transition from a regulatory level whereby cryptocurrencies are "recommended" to a state where digital tokens are "regulated":
"[Perconseguireildivietodiriciclaggiodidenaro/lalottaalfinanziamentodelterrorismo(AML/CFT)sarannonecessarirequisitipiùspecificiinlineaconirecentiemendamentialleraccomandazionidelGruppodiazionefinanziaria(FATF)"[Inordertoachieveanti-moneylaundering/combatingthefinancingofterrorism(AML/CFT)requirementsmorespecificrequirementswillbenecessaryinlinewiththerecentamendmentstotheFinancialActionTaskForce(FATF)Recommendations"[perconseguireildivietodiriciclaggiodidenaro/lalottaalfinanziamentodelterrorismo(AML/CFT)sarannonecessarirequisitipiùspecificiinlineaconirecentiemendamentialleraccomandazionidelGruppodiazionefinanziaria(GAFI)”[inordertoachieveanti-moneylaundering/combatingthefinancingofterrorism(AML/CFT)requirementsmorespecificrequirementswillbenecessaryinlinewiththerecentamendmentstotheFinancialActionTaskForce(FATF)Recommendations”
At present, the South African government does not intend to prohibit the trade in cryptocurrencies. The "limited regulations" that will be implemented are in favor of the cryptocurrency e Bitcoin of a more regular standard in order to protect individuals rather than maintain strict control over the digital financial market.
Disclosure: Coindirect and CoinInsider have an investment from Balfour Venture Capital.
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