South Africa is another country that has taken a stance on the crypo industry and its regulation. The slow move of bitcoin has been somewhat unnoticed, however the statistics speak differently. According to a survey, 10.7% of South African internet users have some kind of bitcoin investment, quickly shifting the attention of authorities to the cryptocurrency industry.
A newly published policy paper by the Intergovernmental Fintech Working Group (IFWG), whose members include the the South African Reserve Bank, the Financial Sector Conduct Authority and the National Treasury, states that cryptos will “remain without legal tender status.”
Through the policy paper South African regulators are endeavouring for a crypto oversight framework, the first in the country, with the main goal of regulating the local crypto industry, but also introducing proper license issuing guidelines, and pushing for detailed cash flow reports.
The policy suggest that the industry implements certain recommended measure made by the Financial Action Task Force (FATF), particularly the aptly named “Travel Rule”, and the so called “new technologies” AML measures.
Furthermore, the Intergovernmental Fintech Working Group wants to ban the usage of crypto as a settlement tool, and is also concerned with the impact of crypto on fiat currencies.