South Africa Suggests Stringent Regulatory Framework For Virtual Currencies

The Financial Sector Conduct Authority, the South African Reserve Bank, and the National Treasury partook in the development of South Africa’s new policy paper advocating stringent supervision of the cryptocurrency domain.

In a roadmap, the financial regulators of South Africa suggested that virtual currencies should remain without legal tender status. The roadmap outlined the suggested crypto laws which might be adopted by the country.

As per the policy paper released by the Intergovernmental Fintech Working Group (IFWG) of South Africa, the mushrooming digital currency domain is past due for stringent financial inaccuracy, detailed cash flow monitoring, a licensure structure, and more.

The Intergovernmental Fintech Working Group mentioned,

“Crypto assets and the various activities associated with this innovation can no longer remain outside of the regulatory perimeter.”

Digital assets would face new formal limitations on when and how it can be utilized. For instance, the policy paper calls for a ban against using virtual currency as a settlement instrument within the financial infrastructure of South Africa. However, it asks that cryptocurrency be recognized for domestic payments and be regulated in accordance with them.