21 Apr Highlights of Position Paper On Crypto Regulation In South Africa
Thanks to my friends Frisco @CryptoTraveler1 and @Jurgen_Kuhnel of Xago.io, we had the opportunity to review and produce a high level for you on the Position Paper on Crypto Assets by South African Intergovernmental Fintech Working Group (IFWG). In my opinion it is a really sensible, comprehensive and pragmatic view of “crypto assets” and how they could most effectively be regulated and catalysed for an improved South Africa and its people. Regulation gives businesses more certainty which is good for investment and forward planning. They have classified crypto as “digital assets” and crypto companies will be called “digital asset providers”. They will need to comply with KYC and AML and it will be mandatory to become registered. There will be a BOP code for cross border digital asset transactions so they can be legitimately reported. Registered digital asset providers will be permitted to buy crypto overseas which has been a grey area up till now. Purchasing of digital assets overseas could form part of the SDA (Single Discretionary Allowance) as part of the South African capital controls. No reporting would be necessary for transactions under R25k. Whilst government control is not always the most popular thing for cryptonites, this is a very mature approach. That crypto will be legitimised and reportable gives a high level of certainty for crypto businesses making long term plans in South Africa. Click here to contact us for your online payments across Africa Our services include:
