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The version of the SARB document presents recommendations regarding policy proposals to participants in the current sector. Furthermore, it offers an overview of the prevalent risks and benefits related to digital resources. Until February 15, 2019, they made this document open for the collection of comments from the public.
Furthermore, this consultation document belongs to the FinTech InterTovernmental Working Group known as IFWG. Furthermore, this group involves members of the Treasury and the Sarb. They come together to establish recommendations for digital asset regulation in South Africa.
On the other hand, the national manager of the crypt firm of Luno, Marius Reitz, reveals that Luno fully supports the risky and functional approach mentioned in the consultation document. Adds also:
Luno also supports the decision of the IFWG to observe and adhere to international trends in terms of regulation of cryptographic activities. We applaud the decision to implement the AML / CFT which is part of the recent amendments to the Recommendations of the Financial Action Task Force and that all suppliers of virtual goods register with the Financial Intelligence Center (FIC).
He believes this move will prevent scammers from protecting customers' information and money. According to the document, the proposed regulation will help to track the purpose of purchase / sale related to the cryptocurrency. For the most part, it will focus on improving compliance with current financial security legislation.
The IFWG reports that all custody and payment service providers and cryptocurrency trading platforms must register with the IFWG. They will also have to comply with the provisions of AML / CFT of the Financial Intelligence Center Act (FIC). This also includes platforms such as cryptocurrency ATMs, Bitcoin exchanges and trading centers.
Meanwhile, the government is suggesting cryptocurrency service providers to monitor user transactions, especially large transactions. How, they could connect to illegal activities and if there is no compliance, it is not possible to impose administrative sanctions. The document also mentions that South Africa currently does not intend to prohibit the purchase, sale or payment of encrypted assets. Reitz also shares:
The regulation will provide consumers or potential consumers with the convenience that the service they manage meets the established regulatory standards. It can also lead to more talents and investment capitals leading to the industry, unlocking more business models and bringing more advanced products to market.
He states that they are actively trying to drive regulations within the encrypted sector along with various other financial regulators and central banks such as SARB. The imposition of regulations could improve the general trust and stability of the market, ultimately bringing clarity to businesses and consumers.
SARB report on the cryptocurrency regulation, what is your point of view? Share your opinions on ours chirping and Facebook pages.
Summary
Item name
SARB presents a report on the cryptocurrency regulation
Description
Recently, the SA Reserve Bank, known as Sarb, shares their revisions on the regulation of cryptocurrencies by publishing a consultation document within the country.
Author
Delma
Publisher name
Coinpedia
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