Experts weigh in on new crypto regulations in South Africa
As part of a series of amendments to South Africa’s financial laws, crypto-asset service providers will become accountable institutions. A report from the South African treasury announced further crypto regulations “to be finalized during 2022.”
In brief, the proposed changes will ensure that “any person providing advice or intermediary services related to crypto assets must be recognized as a financial services provider under the act and must comply with the act’s requirements."
Marius Reitz, the Luno crypto platform General Manager for South Africa shed light on the changes, commenting that “credible crypto players welcome regulation,” adding “regulation is a vital part of the cryptocurrency ecosystem.”
Reitz told Cointelegraph:
However, for Hermann Viver, the founder of Bitcoin Ekasi, a South African Bitcoin Beach-inspired project, it's a different story. They told Cointelegraph that sharper "KYC and AML rules push already marginalized people even further towards the margins of society. And ultimately, “authorities tend to approach the situation with a one size fits all solution, which for many, turns out not to be a solution at all.”
Vivier told Cointelegraph:
Nonetheless, the treasury’s decision to tighten “money laundering and terror risk financing controls through crypto assets,” comes as little surprise to Bitcoin Ekasi and other members of the South African cryptocurrency industry.
The South African authorities have previously warned large players such as Binance from operating in the country. Elsewhere, Unathi Kamlana, the commissioner of South Africa’s Financial Sector Conduct Authority, was vocal on the protection of vulnerable crypto investors.
For Luno, “a notable aspect of the SA Reserve Bank’s approach is
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