Fintech Top Stories

Working Group seeks crypto ecosystem regulation in South Africa

The intergovernmental fintech released a new position paper on crypto-assets of the country

South Africa-based fintech Working Group has recently released a new position paper on crypto-assets of the country, according to the media. The document urges the regulation of the cryptocurrency system in the country, Africa’s biggest crypto market.

Working Group is an intergovernmental fintech of South Africa and comprises vital players of the South African government. The recent paper stated the importance of “a staged approach to bring crypto-assets within the regulatory remit through the regulation of crypto-asset service providers.” It also outlines “25 recommendations for a revised South African policy, legal and regulatory position on crypto assets and related activities.”

Working Group’s efforts in regulating cryptocurrencies are essential for those involved in trading and working with digital currency. Crypto exchanges like Luno have been witnessing a steady growth of customers. However, regulation on cryptocurrencies in the country has been uncertain. As a result, it has been on the exchanges to ensure they are working legally.

The government has stated to the media that the “underlying economic function of crypto assets rather than the specific technology applied or the entity involved.” There are three areas of crucial crypto regulations proposed in the document. It focuses on the Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) framework, cross-border financial flows and the application of financial sector laws.

Exchanges and other crypto asset providers will have to adhere to these legislative requirements that include registering with the Financial Intelligence Centre (FIC), conducting customer identification and verification, conducting customer due diligence, along with keeping records of client and transactional information. The report also expects to report cash transactions above $1,818.

Related posts

Airlines and airports sue UK over Covid-19 travel rules

GBO Correspondent

Russia’s oil major Rosneft aims to attract foreign investors for Vostok oil mega project

GBO Correspondent

HSBC rolls out one-stop solution Omni Collect in India

GBO Correspondent