South African Reserve Bank to Strictly Regulate Cryptocurrency in 2020

By Alo Kingsley   Dec 03, 2019 2 Min Read



The South African Reserve Bank (SARB) is planning on introducing new regulations on cryptocurrency, which according to Kuben Naidoo, SARB deputy governor, will be fully implemented and enforced in the first quarter of 2020. The purpose of the new regulations noted in the
report is to stop the citizens from using digital currency to evade sanctions or controls.


The coming regulations are regarded as a framework for how local currency should be exchanged and sent outside the country via cryptocurrencies and will be enforced by the SARB.


Concerns are being raised by the South African blockchain development community, SA Crypto. A representative said, "The implications of the SARB clamping down on cryptocurrency use for the purpose of stricter capital controls are far-reaching and alarming."


Concerning the planned regulations, the local bank FirstRand Bank (FNB), has already closed all the crypto services it offers to citizens, stating that:


"
FNB considers this to be a prudent course of action following a comprehensive review of the potential risks currently associated with these entities, particularly given that appropriate regulatory frameworks are not yet in place."


AltCoinTrader, one of South Africa’s largest cryptocurrency exchanges, showed how disappointed they were with FNB’s decision to quit providing services for cryptocurrencies merchants. AltCoinTrader has been with FNB since 2015.


Richard de Sousa, AltCoinTrader chief executive, issued a statement where he showed his displeasure towards FNB's decision to discontinue its crypto services.


"We are disappointed that a financial institution would succumb to international pressure like this, with banking services being denied to individuals and industry players around the globe,"
he said.

 

 

 

Image via Shutterstock

About the author

Alo Kingsley
A blockchain/cryptocurrency enthusiast and writer with immense interest in the decentralized power inherent in cryptocurrencies and the growth of the disruptive innovation of blockchain in, Africa. I also believe that the government needs the power of cryptocurrencies just as cryptocurrencies need the power of the government. When I'm not writing, I'm meeting friends and seeing movies, swimming and playing chess will soon be added to the list.




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